- Argentina edge South Africa to keep title hopes alive
- Biden says China 'testing us,' in hot mic remarks to Quad allies
- Dubois destroys Joshua to retain IBF world heavyweight crown
- Guardiola says critics want Man City wiped 'from face of the Earth'
- Biden says 'Quad' is 'here to stay' despite challenges
- Dubois knocks out Joshua to retain IBF world heavyweight crown
- Vinicius helps 'faster' Madrid overturn stubborn Espanyol
- Zelensky to press US on long-range missile strikes inside Russia
- PSG drop first points in draw at Reims
- Vinicius, Mbappe on target as Madrid crush plucky Espanyol
- Jeeno leads Ko by two at LPGA Queen City Championship
- Bottega Veneta goes for 'E.T.' chic as Madonna pops into D&G
- Messi, Miami frustrated by New York late leveler
- Musk's X platform takes first step toward lifting Brazil ban
- 'Business as usual' for Australia match-winner Carey amid boos
- Israeli jets pound Lebanon after deadly Beirut strike
- Ten Hag bemoans Man Utd's lack of killer instinct in Palace stalemate
- France's Macron appoints new government in shift to right
- Cheika proud of Leicester grit after winning start as boss
- Profligate Man Utd pay price in 0-0 draw at Palace
- Kane, Olise run riot as Bayern thump Bremen
- Diaz fires Liverpool top of Premier League, Man Utd held at Palace
- LIV champion Rahm out of LIV Team semis with severe flu
- Slot surprised by tearful Nunez's moment of magic
- Title rivals Norris, Verstappen on 'cool' front row for Singapore GP
- Biden talks China with 'Quad' leaders in hometown summit
- Juve and Napoli play out goalless draw in early Serie A title tussle
- Alcaraz fears tennis tour grind will 'kill us'
- Carey sparks recovery as Australia thrash England in 2nd ODI
- Leclerc, Sainz lament 'disappointing' Saturday in Singapore
- Bottega Veneta holds investors' aces as Madonna pops into D&G
- Beirut digs for victims at building flattened in Israeli strike
- Verstappen stages protest over 'ridiculous' swearing punishment
- Bayern boss Kompany lauds 'special talent' Olise
- Diaz fires Liverpool top of Premier League, Spurs bounce back
- Heavy fire over Israel-Lebanon border after deadly Beirut strike
- Ramos guides unbeaten Toulouse to Montpellier win despite Hogg scuffle
- Myanmar flood death toll jumps to 384
- Chelsea owners 'happy' with win at West Ham amid rift report
- Kane and Olise run riot as Bayern thump Bremen
- Ramos guides unbeaten Toulouse to Montpellier win
- Norris pips Verstappen to dramatic Singapore pole after Sainz crash
- Carey takes Australia to 270 in 2nd ODI against England after collapse
- Two Hezbollah leaders killed in Israel's Beirut strike
- Hungary Danube waters reach decade high after Storm Boris
- Bagnaia cuts Martin's MotoGP lead with Emilia-Romagna sprint win
- Jackson double fires Chelsea to victory at woeful West Ham
- Fiji beat Japan to lift Pacific Nations Cup
- Kasatkina to face Haddad Maia in Korea Open final
- S.Africa snowfall closes roads, strands motorists overnight
Asian markets mostly drop as inflation spike fans rate fears
Asian markets mostly fell Friday as traders resumed their Ukraine-fuelled selling after the previous day's bounce, with data showing US inflation at a 40-year high adding pressure on the Federal Reserve to ramp up interest rates.
Bets on a more aggressive approach by the Federal Reserve to rein in runaway prices added to nervousness on trading floors, while the failure of high-level talks between Moscow and Kyiv to de-escalate the war also helped torpedo a brief rebound in equities.
However, while oil edged up it struggled to regain the 14-year highs touched this week as governments embark on a diplomatic push to replace the output erased by strict sanctions and an embargo on Russian exports.
While the war in eastern Europe continues to rage, investor focus turned to the release Thursday of figures showing US inflation hit 7.9 percent in February, the highest since January 1982.
The reading comes just ahead of the Fed's next policy meeting, where it is expected to announce the first of what could be up to seven interest rate hikes this year.
While a phase of tightening is certain, speculation has been rife about how many and how steep the rises will be.
The war has given officials an extra headache as the surge in oil markets will add upward pressure to consumer prices, though the bank must tread a fine line between fighting inflation and trying to prevent a recession.
"The headline print was a 40-year high, reflecting higher gasoline, food and shelter costs. And now with energy prices on the rise following Russia's invasion of Ukraine and sanctions, expectations are for inflation to rise even more," said National Australia Bank's Rodrigo Catril.
The "net takeaway is that US inflationary pressures are proving to be more persistent and expansive, increasing the pressure on the Fed to lift the funds rate and cool the economy".
US Treasury Secretary Janet Yellen admitted rising prices were a problem and annual inflation will likely "remain very uncomfortably high".
Also on Thursday the European Central Bank hiked its inflation forecast for the year and slashed its economic growth outlook while taking a more hawkish stance on policy.
The prospect of higher US borrowing costs -- and Japan unlikely to hike anytime soon -- has spurred a rally in the dollar to a more than five-year high of 116.74 yen. That is despite the Japanese unit usually outperforming in times of crisis owing to its value as a safe haven.
All three US indexes ended in the red, having enjoyed a strong burst higher the day before and Asia followed suit after its own advance on Thursday, though early losses were pared or reversed in some places.
Tokyo lost more than two percent, while Hong Kong slipped 1.8 percent with Sydney, Seoul, Taipei, Manila, Jakarta, Bangkok, Kuala Lumpur and Wellington also in the red.
But Shanghai, Mumbai and Singapore squeezed out gains.
Stephane Michel at Federated Hermes saw some positives.
"Despite markets suffering their worst start in memory, they do feel like they're trading in an orderly, albeit volatile, manner with support and tentative buying at cheaper levels," he said in a commentary.
"Any positive rumours or announcement is met with enthusiasm and FOMO (Fear of Missing Out) and buy the dip have been such good performers as investment strategies through the previous crises.
"Occasionally, however, we do get reminded of the prospects of military escalation, stagflation, supply chain disruption, sanctions, energy blockades etc and we move lower still. What is clear is there is little consensus or conviction on which direction we go next."
Oil prices have been a key driver of the extreme volatility in markets since the Russian invasion, with Brent stuck below $110 days after touching a 14-year high of $139 on Monday after the US said it would embargo Russian crude.
The black gold is down around eight percent on the week, with moves to find other sources of energy keeping the market tamped down. However, observers warn prices could rocket again and some have forecast an eye-watering $250 a barrel at some point.
"It's been a rollercoaster ride for oil this week, and for some, the weekend cannot come quick enough," said Stephen Innes Managing Partner at SPI Asset Management.
"There is still an abundance of chatter under the surface that diplomatic efforts will prove successful in unlocking supply alternatives, with Saudi Arabia, UAE, Iran seemingly the most likely candidates," he said.
"Still, Russia remains the most significant risk for oil, and the prospect of lost production will keep a relatively high floor on oil prices."
- Key figures around 0710 GMT -
Tokyo - Nikkei 225: DOWN 2.1 percent at 25,162. 78 (close)
Hong Kong - Hang Seng Index: DOWN 1.8 percent at 20,518.25
Shanghai - Composite: UP 0.4 percent at 3,309.75 (close)
Brent North Sea crude: UP 0.6 percent at $109.95 per barrel
West Texas Intermediate: UP 0.7 percent at $106.76
Dollar/yen: UP at 116.67 yen from 116.12 yen Thursday
Euro/dollar: UP at $1.1000 from $1.0986
Pound/dollar: UP at $1.3093 from $1.3081
Euro/pound: UP at 84.01 pence from 83.96 pence
New York - Dow: DOWN 0.3 percent at 33,174.07 (close)
London - FTSE 100: DOWN 1.3 percent at 7,099.09 (close)
K.Thomson--BTB