Global Rally Halts as Asia Markets Fall, Red-Hot Stocks May Take a Breather

The global rally in stocks came to a halt as a late slide on Wall Street dampened investor sentiment in Asia. The decline in UK inflation and a jump in US consumer confidence fueled expectations of interest rate cuts next year, but the reversal in Wall Street's performance triggered a sharp decline in world stocks. If the negativity continues, emerging markets, Asian markets, and Chinese markets, in particular, are likely to underperform. In Hong Kong, consumer price inflation has been rising, while in Indonesia, the central bank is expected to keep interest rates steady.