Asian markets struggle as inflation worries offset recovery hopes

Hong Kong

Markets mostly fell Monday as falling infection rates and more good news on the vaccine front were overshadowed by growing worries about high valuations and inflation.

While the United States is approaching 500,000 deaths, there is optimism that there is light at the end of the tunnel in the Covid-19 crisis as governments embark on immunisation programmes that will allow economies to reopen.

Expectations that President Joe Biden’s vast stimulus will be passed next month are also keeping spirits up, as a raft of data last week on factory and services activity indicated the financial hit to the United States and Europe might not be as bad as feared.

News that the Pfizer/BioNTech jab appeared to prevent nine in 10 people from getting the disease in Israel — which is the most advanced in its rollout.—AFP