Asian shares fall as rising energy costs fan inflation fears

news.yahoo.com
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Benchmarks declined in Tokyo, Hong Kong and Shanghai. Oil prices advanced, having closed above $80 per barrel in New York after trading briefly above $81...
Shares retreated in Asia on Tuesday as surging prices of oil, coal and other energy added to concerns over inflation.

per barrel on Monday for the first time in seven years.

Costs of oil, coal and natural gas have been climbing, adding to price pressures that might lead the Federal Reserve and other central banks to pull back more quickly on their support for markets.

Tokyo's Nikkei 225 index lost 0.9% to 28,230.61, while the S&P/ASX 200 slipped 0.3% to 7,280.70. In Seoul, the Kospi fell 1.4% to 2916.38

The Hang Seng in Hong Kong gave up 1.7% to 24,908.11 and the Shanghai Composite index sank 1.8% to 3,527.59.

Technology company shares fell after the Wall Street Journal reported that the government was inspecting financial ties with private sector companies.

Shares in e-commerce giant Alibaba Group lost 4.2% while search engine company Baidu declined 4%.Tencent Holdings, which operates the popular WeChat messaging service, dropped 2.9%.

Shares also fell in India and Taiwan, but rose in Jakarta and Bangkok.

Energy demand has bounced back faster than output as economies recover from the pandemic, driving prices higher. Other factors, including a shortage of truck drivers, shipping disruptions, flooding of coal mines in China and drought that has dented hydropower generation are also pushing prices…
ELAINE KURTENBACH
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