Asia stocks wilt, stagflation lingers

By Kevin Plumberg HONG KONG (Reuters) - Most major Asian stock dipped on Tuesday as oil and food prices showed no signs of defusing stagflation fears, particularly with soybean prices at a record and oil above $140 a barrel. Crude climbed to an all-time high above $143 overnight but then slipped on evidence that purse-busting prices at the pump are having an adverse effect on fuel demand from U.S. consumers. The 40 percent surge in oil prices this year, even though global economic growth has slipped below its long-term trend, has made stagflation -- increased inflation combined with slowing growth -- a top fear for investors and a major headache for policymakers. After a five-year bull market, Asian equities have fallen sharply on concerns that the credit crisis will sap demand for exports and inflation will erode returns. As... [read full story]