Asian markets sank Monday on growing concerns of a sharp hike in US interest rates as officials struggle to contain runaway inflation, while oil was hit by expectations Chinese demand will dry up owing to Covid lockdowns.
The losses extended a sell-off across the world last week fuelled by comments from Federal Reserve boss Jerome Powell indicating officials will hike borrowing costs by half a point next month and possibly several times more by year's end.
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Investors have been fleeing risk assets as they become worried that the tightening -- to fight inflation at more than 40-year highs - will knock the pandemic economic recovery off course and dent companies' bottom line.
Oil markets were also sharply lower as China continues to struggle to get a grip on a Covid outbreak that has forced Shanghai - country's biggest city -- into lockdown and dealing a blow to demand.
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