BANGKOK — Asian shares sank sharply Friday after several central banks around the world cranked interest rates higher in their fight against inflation.
Hong Kong and Tokyo shed nearly 2% and most other regional markets declined. U.S. futures and oil prices also were lower.
Japan reported its inflation rate was higher than expected, adding to expectations the central bank might adjust its policies to reflect upward price pressures, which have pushed the dollar’s value against the yen sharply higher. The Bank of Japan has kept its benchmark interest rate at minus 0.1% for a decade as policymakers keep credit cheap to encourage more investment and spending.
The core inflation rate, excluding volatile energy and food prices, was 3.2% in May, above the official 2% target for a 14th straight month, the government reported.
“We think there are signs of inflationary pressure building up…
