Asian stocks slump on fresh inflation, China Covid worries

SINGAPORE: Asian stocks sank on Monday and bond yields ticked higher as red-hot inflation reignited worries about even more aggressive U.S. interest rate increases while new mass COVID-19 testing in China sparked concerns of more crippling lockdowns.

The heightened expectations about Federal Reserve rate hikes drove the Japanese yen to a more than two-decade low against the dollar, prompting more concern from authorities about the sharp moves down.