Asian equities fall as risk sentiment shifts

Asian equities followed Wall Street’s sharp decline while bonds rallied on Friday as risk sentiment soured over a rising concern that the global inflation may continue even after global growth has peaked.

In Japan, the Nikkei sank 1.86%, while the broader Topix dropped 1.95%.

Australian stocks plummeted 2.05%, while the South Korean Kospi took a 1.51% loss.

An MSCI index of Asia-Pacific stocks shed 1.07%.

Meanwhile, Chinese markets are closed for a week from Friday in observance of the Golden Week holiday.

China remains a source of concern for investors as its tech and property sectors face regulatory curbs even as the country grapples with an energy shortage that threatens to increase global energy prices.

Across the Pacific, U.S. stock futures pointed to a 0.51% loss for the S&P 500, after an overnight index drop of 1.19%.

Nasdaq futures likewise indicated a 0.49% decline, adding to the 0.43% loss on Thursday.