Worst Asia stock slump in over a year shows few signs of abating

While inflation has emerged as the most immediate concern for equity investors worldwide, confidence in Asia has also been hit due to a worsening Covid-19 outbreak from Taiwan to Singapore

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.

While inflation has emerged as the