• Asian stocks are set to slide after hotter- than-estimated US inflation data triggered a selloff on Wall Street. Australian and New Zealand bonds dropped in early trading.
• Equities fell more than 1% in Sydney and futures pointed to similar declines in Tokyo after the consumer price index report led US shares to drop from near all-time highs. Two-year Treasury yields surged to levels not seen before the December central bank “pivot” while the dollar approached a three-month high. Australian 10-year yields climbed 10 basis points.
• The Golden Dragon index of US-traded Chinese companies fell 2.7%, its biggest decline in almost a month, as trading is set to resume in Hong Kong but China remains closed for Lunar New Year holidays. Swap traders ratcheted down their expectations for a Fed cut before July while the stock market’s “fear gauge” — the VIX — surged the most since October.