INSUBCONTINENT EXCLUSIVE:
China has been forced to impose tough containment measures.Asian markets sank Wednesday as a slowdown in US consumer inflation failed to
overcome concerns about the fast-spreading Delta variant, while Hong Kong was dragged by a collapse in casino firms as Macau unveiled a
planned crackdown on the sector.After a bright start to the month, equities around the world have gone into reverse in recent sessions as
confidence is shaken by the virus with a number of countries seeing a worrying jump in new cases that have forced some, including China, to
reimpose tough containment measures.Investors are also having to grapple with a range of other issues including Federal Reserve plans to
taper monetary policy, China's regulatory crackdown on private enterprises and a possible default by Chinese property giant Evergrande,
which is teetering under debts of more than $300 billion.Data Tuesday showing US consumer prices rose last month at a slower pace than
expected soothed concerns that inflation could force the Fed to begin winding down its market-supporting policies earlier than thought.The
reading had taken on particular importance after producer prices -- what firms pay at the factory gate -- hit a record high in August owing
to rising demand and tighter supplies.The figures showed a slight dip, appearing to back up Fed officials' insistence that the sharp rises
were temporary because of the reopening and short-term supply issues.But US investors shrugged at the news and sent all three main indexes
into the red.Analysts pointed out that the easing came on the back of concerns about the spread of the Delta variant, which is sending
That led to a sharp drop in airline fares, while used car sales -- a major cause of recent inflation spikes -- also fell.However, National
Australia Bank's Rodrigo Catril said: "There are still many factors suggesting inflation is unlikely to ease significantly
Inflation remains strong for food, housing and other goods."The decline in airline fares and hotel room rates are likely to reverse as the
Delta wave fades."- Casinos plunge -While noting that the print would ease pressure on the Fed to tighten policy, he added that "debate on
higher US inflation has not gone away and next year the big focus will be to what extent the expected rise in wages will deliver
longer-lasting upward pressure on prices".A taper in November or December still looked likely, he said.And Dana D'Auria, of Envestnet Inc,
told Bloomberg Television: "It is hard to argue at this point that (inflation) remains entirely transitory."You couple that with the fact
that there are still all these supply shocks that we are still working through
I think the markets are going to have to feel the pain."Asian markets were under pressure, with below-par retail sales data further
indicating China's economy continued to slow in August.Hong Kong led losses, with Macau casino operators collapsing as they became the
latest to fall into China's regulatory crosshairs.On Wednesday, the Macau government unveiled plans to tighten control over the industry,
with recommendations including reviewing the number of concessions it issues, putting representatives on the boards of operators and
criminalising underground banking in the industry.Sands China tanked 30 percent, Wynn Macau and MGM China lost 27 percent each, Galaxy
Entertainment was off 19 percent, while SJM Holdingas and Melco dived 20 percent.The news comes as the firms were already struggling owing
to the impact of the coronavirus on tourism to the city, which usually rakes in more money in a single week than Las Vegas makes in a
month.Tokyo, Shanghai, Singapore, Sydney, Wellington, Manila, Taipei and Jakarta all fell, though Seoul, Bangkok and Mumbai managed
gains.London opened flat as data showed UK inflation spiked at a nine-year high last month
Paris and Frankfurt edged up.Meanwhile, observers said the selling in September was not much of a surprise."September is the only month in
the calendar year with historically negative returns if you look back 50 years or more," said markets strategist Louis Navellier."That's
not a guarantee, as some Septembers have been great, but the long-term trend suggests that we should be on the lookout for sell-offs in
Septembers."- Key figures around 0720 GMT -Tokyo - Nikkei 225: DOWN 0.5 percent at 30,511.71 (close)Hong Kong - Hang Seng Index: DOWN 1.7
percent at 25,077.32Shanghai - Composite: DOWN 0.2 percent at 3,656.22 (close)London - FTSE 100: FLAT at 7,034.65Dollar/yen: DOWN at 109.50
yen from 109.66 yen at 2110 GMTEuro/dollar: UP at $1.1809 from $1.1802Pound/dollar: UP at $1.3828 from $1.3806Euro/pound: DOWN at 85.40
pence from 85.45 penceWest Texas Intermediate: UP 0.7 percent at $70.98 per barrelBrent North Sea crude: UP 0.7 percent at $74.12 per
barrelNew York - Dow: DOWN 0.8 percent at 34,577.57 (close)(This story has not been edited by TheIndianSubcontinent staff and is
auto-generated from a syndicated feed.)
