China: Markets plunge on lockdowns, rate hike fears

Stock markets and oil prices sank Monday on growing concern that lockdowns in China aimed at fighting a worsening Covid outbreak could further harm a world economy battling decades-high inflation.

The losses extended last week’s sell-off triggered by Federal Reserve boss Jerome Powell indicating that the US central bank would hike interest rates by half a percentage point next month and possibly several times more this year.

Among the world’s major stock markets, Shanghai led the losses, closing down more than 5 per cent.

• Indian rupee slumps as dollar strengthens after hawkish Fed comments