Asia markets swing as reopening optimism battles inflation fear

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Hong Kong

Asian markets fluctuated Tuesday, with growing optimism that the rollout of vaccines will allow the global economy to get back on track offset by niggling worries that the recovery will fan inflation and lead to a hike in interest rates.

With governments picking up the pace in their inoculation drives, and infection and death rates slowing in most parts of the world, observers are predicting a surge in economic activity from the middle of the year as lockdowns are eased.

Added to that is Joe Biden’s huge growth-boosting spending programme, which is likely to be passed by Congress next month, on top of the Federal Reserve’s pledge to keep monetary policy ultra-loose for as long as needed.

Monumental government and central bank support worth trillions of dollars has been a key driver of the surge in world equities from their nadir almost a year ago when the coronavirus was rampaging across the planet.—AFP

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