Asia stocks tumble as stagflation hits outlook

By Kevin Plumberg HONG KONG (Reuters) - Asian stocks fell on Wednesday, with Japan recording its worst losing streak in 43 years, as climbing oil and food prices exacerbated stagflation fears, increasing the risk investors will capitulate and knock the market even lower. European stocks were flat to modestly higher, but high oil prices, and a grim warning from British retailer Marks & Spencer on the consumer outlook may cap gains. The need for stability became paramount as the outlook for corporate earnings, business investment and consumer spending all deteriorated in the face of upward price pressures, supporting government bonds and gold. Cathay Pacific and M&S, two firms that warned about their bottom lines, were the latest to take a hit as a result of slower growth and high energy costs. "Inflation is rising globally,... [read full story]