Stocks and oil tumble as recession fears mount

By Sam Byford

TOKYO (Reuters) - Asian stocks slipped across the board on Wednesday, failing to extend Wall Street's rally as persistent worries about interest rates and inflation remained a key focus for investors, while the Japanese yen hit a fresh 24-year low against the dollar.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.39%, still up 1.02% on the more than five-week low it hit on Monday. Tokyo's Nikkei gave up early gains and was flat.

Investors are continuing to assess how worried they need to be about central banks pushing the world economy into recession as they attempt to curb red hot inflation with interest rate increases.

The main U.S. share benchmarks rose 2% overnight on the possibility the economic outlook might not be as dire as thought during trade last week when the S&P 500 logged its biggest weekly percentage decline since March 2020. [.N]

But the lift in sentiment did not last long with S&P 500 and Nasdaq futures both down nearly 1% on Wednesday while EUROSTOXX 50 futures lost 1.3% and FTSE futures shed 0.9%.