Asian shares extend global selloff amid bets on more aggressive Fed

Asian shares tumbled, the dollar held firm and two-year Treasury yields hit a new 15-year high on Wednesday, as a U.S. inflation report dashed hopes for a peak in inflation, fuelling bets rates may have to be raised higher for longer, Qazet.az reports.

U.S. Labor Department data showed on Tuesday the headline Consumer Price Index gained 0.1% on a monthly basis versus expectations for a 0.1% decline. In particular, core inflation, stripping out volatile food and energy prices, doubled to 0.6%. 
 

Wall Street saw its steepest fall in two years, the safe-haven dollar posted its biggest jump since early 2020, and two-year Treasury yields, which rise with traders' expectations of higher Fed fund rates, jumped to the highest level in 15 years.

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 2.1% on Wednesday, dragged lower by a 2.7% plunge in resources-heavy Australia (.AXJO), a 2.4% drop in Hong Kong's Hang Seng index (.HSI) and a 1% fall in Chinese bluechips (.CSI300).