Asian Shares Lower On US Inflation Jitters

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.33 per cent, as Chinese blue-chips dipped 1 per cent.

Asian shares fell on Wednesday after data showing the biggest jump in US inflation in 13 years fuelled some market expectations that the Federal Reserve could exit pandemic-era stimulus earlier than previously thought. But US bond yields and the dollar were lower in Asian trade after jumping a day earlier on the inflation data. The US consumer price index jumped 0.9 per cent in June, the Labor Department said on Tuesday. That was above market expectations and the largest gain since June 2008. "Against the background of higher, longer US inflation, a taper coming earlier seems to be the likely direction of travel as far as policy goes," said Rob Carnell, ING's Asia-Pacfic head of research.