- Honda and Nissan expected to begin merger talks
- 'Draconian' Vietnam internet law heightens free speech fears
- Israeli women mobilise against ultra-Orthodox military exemptions
- Asian markets track Wall St rally as US inflation eases rate worries
- Tens of thousands protest in Serbian capital over fatal train station accident
- Trump vows to 'stop transgender lunacy' as a top priority
- 'Who's next?': Misinformation and online threats after US CEO slaying
- Only 12 trucks delivered food, water in North Gaza Governorate since October: Oxfam
- Langers edge Tiger and son Charlie in PNC Championship playoff
- Explosive batsman Jacobs gets New Zealand call-up for Sri Lanka series
- Holders PSG edge through on penalties in French Cup
- Daniels throw five TDs as Commanders down Eagles
- Atalanta fight back to take top spot in Serie A, Roma hit five
- Mancini admits regrets over leaving Italy for Saudi Arabia
- Run machine Ayub shines as Pakistan sweep South Africa
- Slovak PM Fico on surprise visit to Kremlin
- 'Incredible' Liverpool must stay focused: Slot
- Maresca 'absolutely happy' as title-chasing Chelsea drop points in Everton draw
- Salah happy wherever career ends after inspiring Liverpool rout
- Three and easy as Dortmund move into Bundesliga top six
- Liverpool hit Spurs for six, Man Utd embarrassed by Bournemouth
- Netanyahu vows to act with 'force, determination' against Yemen's Huthis
- Ali hat-trick helps champions Ahly crush Belouizdad
- Salah stars as rampant Liverpool hit Spurs for six
- Syria's new leader says all weapons to come under 'state control'
- 'Sonic 3' zips to top of N.America box office
- Rome's Trevi Fountain reopens to limited crowds
- Mbappe strikes as Real Madrid down Sevilla
- Pope again condemns 'cruelty' of Israeli strikes on Gaza
- Lonely this Christmas: Vendee skippers in low-key celebrations on high seas
- Troubled Man Utd humiliated by Bournemouth
- 2 US pilots shot down over Red Sea in 'friendly fire' incident: military
- Man Utd embarrassed by Bournemouth, Chelsea held at Everton
- France awaits fourth government of the year
- Death toll in Brazil bus crash rises to 41
- Odermatt stays hot to break Swiss World Cup wins record
- Neville says Rashford's career at Man Utd nearing 'inevitable ending'
- Syria's new leader vows not to negatively interfere in Lebanon
- Germany pledges security inquest after Christmas market attack
- Putin vows 'destruction' on Ukraine after Kazan drone attack
- Understated Usyk seeks recognition among boxing legends
- France awaits appointment of new government
- Cyclone Chido death toll rises to 94 in Mozambique
- Stokes out of England's Champions Trophy squad
- Gaza rescuers say Israeli strikes kill 28
- Sweet smell of success for niche perfumes
- 'Finally, we made it!': Ho Chi Minh City celebrates first metro
- Angry questions in Germany after Christmas market attack
- China's Zheng pulls out of season-opening United Cup
- Minorities fear targeted attacks in post-revolution Bangladesh
Asian markets drop on Fed rate fears as US inflation rages
Asian markets sank Friday after a sell-off on Wall Street in response to a forecast-busting jump in US inflation that fanned expectations the Federal Reserve will embark on a more aggressive campaign of monetary tightening.
The 7.5 percent jump in prices last month was the fastest in 40 years and reinforced fears that the central bank is falling behind the curve in keeping it under control, which has fed a sense of uncertainty across trading floors.
US stocks immediately sank on the news but managed to claw their way back as the day progressed before being hit by Fed official James Bullard, who said he wanted to see interest rates lifted one percentage point by the start of July.
The St Louis Fed boss said he was in favour of a 50 basis point lift next month -- double the usual rise and the first since 2000 -- and two more after that.
"I'd like to see 100 basis points in the bag by July 1," Bullard, who has a vote on policy this year, told Bloomberg News. "I was already more hawkish but I have pulled up dramatically what I think the committee should do."
He added: "I do not think it is shock and awe.
"I think it is a sensible response to a surprise inflationary shock that we got during 2021 that we did not expect."
Bullard also said he was open to a very rare announcement of rate hikes between meetings, which further rattled traders, while calling for the quick reduction of the bank's bond holdings that have helped keep rates subdued.
"What began as 'just another ripper inflation print' quickly turned into panic of an emergency hike from the Fed," said Matt Simpson of StoneX Financial.
"As exciting as that is, we think an inter-meeting hike is an outside chance. But that is no reason for traders to not prepare for it, as it is these lower probability events which can spark the biggest moves."
Markets have for months been hit by speculation about the Fed's plans for monetary policy, having made an about-turn at the end of the year on its view that inflation would be temporary and subside as the global economy reopened.
All three main indexes in New York ended sharply lower with tech firms -- which are susceptible to higher rates -- among the worst hit. The Nasdaq dived more than two percent.
Asia, which has enjoyed a broadly upbeat week, was also largely down.
Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei, Manila and Jakarta all fell into the red, though Singapore inched up. Tokyo was closed for a holiday.
The dollar also rallied, breaking through 116 yen.
"We don't think the market has priced the full extent of what we feel the Fed has to do going forward," Elena Hernandez, at GenTrust LLC, told Bloomberg Television.
"Bullard's comments today were a big shock and surprise, especially talking about a potential inter-meeting movement. We expect rates to continue to sell off."
- Key figures around 0230 GMT -
Hong Kong - Hang Seng Index: DOWN 0.4 percent at 24,816.41
Shanghai - Composite: DOWN 0.1 percent at 3,483.10
Tokyo - Nikkei 225: Closed for a holiday
Dollar/yen: UP at 116.02 yen from 115.99 yen
Pound/dollar: DOWN at $1.3552 from $1.3562
Euro/dollar: DOWN at $1.1404 from $1.1434 late Thursday
Euro/pound: DOWN at 84.15 pence from 84.25 pence
West Texas Intermediate: DOWN 0.4 percent at $89.55 per barrel
Brent North Sea crude: DOWN 0.5 percent at $90.95 per barrel
New York - Dow: DOWN 1.5 percent at 35,241.59 (close)
London - FTSE 100: UP 0.4 percent at 7,672.40 (close)
L.Mesquita--PC