Worst Asia Stock Slump in Over a Year Shows Few Signs of Abating
- Asia equity benchmark is lagging global peers for fourth month
- Inflation concerns, virus resurgence clouding region’s outlook
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Asian stocks are falling further behind their global peers, buffeted by a resurgence of Covid-19 cases across the region and mounting investor concern over inflation.
The MSCI Asia Pacific Index slumped 3.2% this week, and is now down 2.7% in May. That’s put the gauge on track for its worst monthly performance since March 2020 -- when markets took the biggest hit from the pandemic. The regional benchmark is also trailing MSCI’s broadest measure of global equities for a fourth straight month, and market watchers are citing several reasons why this underperformance may continue.