<p>Asian equities followed Wall Street sharply lower and bonds rallied on Friday as risk sentiment soured amid growing worries that inflation may persist even after global growth has peaked.</p>.<p>Japan's Nikkei tumbled 1.86 per cent, while the broader Topix slid 1.95 per cent.</p>.<p>Australian stocks slumped 2.05 per cent and South Korea's Kospi lost 1.51 per cent.</p>.<p>An MSCI index of Asia-Pacific stocks dropped 1.07 per cent.</p>.<p>Chinese markets are closed for a week from Friday for the Golden Week holiday.</p>.<p>"You can argue whether it's really stagflation or not, but the whole growth-inflation backdrop seems to have just tilted to a less favorable one," said Rob Carnell, Asia-Pacific head of research at ING in Singapore.</p>.<p>"Whether or not this is actually going to get imbedded and create problems for years to come, we don't need to know right now - it's sufficiently scary that what we're seeing in markets is justified."</p>.<p>US stock futures pointed to a 0.51 per cent decline for the S&P 500, following a 1.19 per cent drop in the index overnight .</p>.<p>Nasdaq futures also signaled a 0.49 per cent retreat, adding to Thursday's 0.43 per cent loss.</p>.<p>The benchmark 10-year Treasury note continued to rally in Tokyo trading, with the yield sliding to the lowest since Sept. 28 at 1.48 per cent.</p>.<p>The dollar index, which measures the currency against six major rivals, was off Thursday's one-year high of 94.504, last changing hands at 94.326.</p>.<p>Federal Reserve Chair Jerome Powell said on Wednesday that resolving "tension" between high inflation and high unemployment is the Fed's most urgent issue, acknowledging a potential conflict between the US central bank's two goals of stable prices and full employment.</p>.<p>China has proved a particular worry for investors, hit by regulatory curbs in the tech and property sectors, and now grappling with a power shortage that threatens to push up energy prices globally.</p>.<p>Crude prices continued to ease on Friday after Brent topped $80 a barrel earlier in the week for the first time in three years.</p>.<p>Brent crude futures were largely flat compared to Thursday at $78.32, while US crude futures were also little changed at $75.07.</p>.<p>Gold, an inflation hedge and safe haven, edged back 0.1 per cent to $1,755.35 an ounce, following Thursday's 1.77 per cent surge, the biggest since March.</p>.<p><strong>Check out DH's latest videos</strong></p>
<p>Asian equities followed Wall Street sharply lower and bonds rallied on Friday as risk sentiment soured amid growing worries that inflation may persist even after global growth has peaked.</p>.<p>Japan's Nikkei tumbled 1.86 per cent, while the broader Topix slid 1.95 per cent.</p>.<p>Australian stocks slumped 2.05 per cent and South Korea's Kospi lost 1.51 per cent.</p>.<p>An MSCI index of Asia-Pacific stocks dropped 1.07 per cent.</p>.<p>Chinese markets are closed for a week from Friday for the Golden Week holiday.</p>.<p>"You can argue whether it's really stagflation or not, but the whole growth-inflation backdrop seems to have just tilted to a less favorable one," said Rob Carnell, Asia-Pacific head of research at ING in Singapore.</p>.<p>"Whether or not this is actually going to get imbedded and create problems for years to come, we don't need to know right now - it's sufficiently scary that what we're seeing in markets is justified."</p>.<p>US stock futures pointed to a 0.51 per cent decline for the S&P 500, following a 1.19 per cent drop in the index overnight .</p>.<p>Nasdaq futures also signaled a 0.49 per cent retreat, adding to Thursday's 0.43 per cent loss.</p>.<p>The benchmark 10-year Treasury note continued to rally in Tokyo trading, with the yield sliding to the lowest since Sept. 28 at 1.48 per cent.</p>.<p>The dollar index, which measures the currency against six major rivals, was off Thursday's one-year high of 94.504, last changing hands at 94.326.</p>.<p>Federal Reserve Chair Jerome Powell said on Wednesday that resolving "tension" between high inflation and high unemployment is the Fed's most urgent issue, acknowledging a potential conflict between the US central bank's two goals of stable prices and full employment.</p>.<p>China has proved a particular worry for investors, hit by regulatory curbs in the tech and property sectors, and now grappling with a power shortage that threatens to push up energy prices globally.</p>.<p>Crude prices continued to ease on Friday after Brent topped $80 a barrel earlier in the week for the first time in three years.</p>.<p>Brent crude futures were largely flat compared to Thursday at $78.32, while US crude futures were also little changed at $75.07.</p>.<p>Gold, an inflation hedge and safe haven, edged back 0.1 per cent to $1,755.35 an ounce, following Thursday's 1.77 per cent surge, the biggest since March.</p>.<p><strong>Check out DH's latest videos</strong></p>