HONG KONG, Oct 13, 2021 (BSS/AFP) - Asian markets were mixed Wednesday as
investors awaited key US inflation data that could play a major role in the
Federal Reserve's plans to tighten monetary policy, while concerns over a
global energy crunch also jangled nerves.

  With the world's top economy well on the recovery track, the US central
bank has already signalled it will begin to wind back the massive financial
support put in place at the start of the pandemic.

  But supply chain bottlenecks, surging demand fuelled by reopenings and
spiking fuel costs have sent inflation soaring in recent months, putting
pressure on bank chiefs to act to prevent prices from running out of control.

  An extended period of higher-than-targeted inflation is ramping up
expectations that the Fed will have to lift interest rates after it has
finished tapering its massive bond-buying programme. And some analysts are
now suggesting the first hike could come as soon as mid-2022, well before the
early 2023 originally predicted.

  The prospect of higher borrowing costs has put the brakes on a rally across
global markets that has run for about a year and a half.

  The upcoming earnings season is also being nervously watched for an idea
about the impact on company profits from trade bottlenecks and rising
inflation, with forecasts for the fourth quarter of particular interest.

  "There's real damage that's potentially lurking from the supply chain
issues," said John Kilduff of Again Capital. "It's a real potential negative
for the global economy."

  Wall Street's three main indexes provided a tepid lead, and Asia struggled
for direction.

  Tokyo, Sydney and Taipei edged down, though there were gains in Seoul,
Singapore, Manila, Jakarta and Wellington.

  Shanghai was also in the red ahead of Thursday's release of China's own
inflation readings, with prices in the world's number two economy also
sharply higher.

  Oil prices edged down having rallied to multi-year peaks on surging demand,
with analysts suggesting hopes for talks between world powers and Iran on the
country's nuclear programme provided some respite.

  A deal could allow Tehran to start exporting crude globally again, easing
some pressure on supplies ahead of the approaching northern hemisphere
winter.

  Limited stockpiles and the reopening of economies have sent prices of oil
and other fuels soaring, raising concerns about the impact on the global
economic recovery.

  Meanwhile, Democrats' suggestions that they could pare back US President
Joe Biden's multi-trillion-dollar infrastructure and social care proposals
have lifted optimism they could get the bills through Congress.

  "Risks to the outlook are rising and Democrats know they are running out of
time," said OANDA's Edward Moya.

  "Progressives and moderates don't want to be responsible for disrupting
Biden's economic agenda, so it looks like some major concessions will be made
shortly."