Asian shares wallow as U.S. inflation data boosts recession fears

Asian shares were pinned at two-year lows on Thursday after white-hot U.S. inflation data drove fears the Federal Reserve will raise interest rates even more aggressively, which boosted the safe haven dollar, Reuters reported.

Underscoring how inflation pressures are also hitting Asia, both the Monetary Authority of Singapore and the Bangko Sentral ng Pilipinas surprised markets by tightening monetary policy on Thursday in off cycle moves.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was flat by early afternoon.

EUROSTOXX 50 futures gained 0.4% and S&P 500 futures reversed early losses to trade 0.1% lower.

Chinese blue chips (.CSI300) rose 0.5% a day after data showed China’s June exports rose at the fastest pace in five months as factories revved up after the lifting of COVID lockdowns. China will release June activity data on Friday along with second quarter GDP.