Asian markets follow Wall St lower on inflation worries

BANGKOK — Shares declined in Asia on Friday after a retreat on Wall Street driven by fears that strong economic data will lead the Federal Reserve to double down on its interest rate hikes to tame inflation.

Shanghai was flat while other major indexes declined. U.S. futures edged higher and oil prices rose. Trading was winding down with the approach of Christmas and New Year holidays.

Japan reported its core inflation rate, excluding volatile fresh foods, rose to 3.7% in November, the highest level since 1981, as surging costs for oil and other commodities added to upward price pressures in the world’s third-largest economy.

While the rate was much lower than in the U.S. and most major European and emerging economies, it adds to pressure on the Bank of Japan to adjust its own policies that have kept interest rates ultra-low to spur growth. For Japan, deflation — falling prices —…