Asia report: Shares lower as Tuesday rally fades on inflation fears

Asian stock markets were lower on Wednesday after overnight losses on Wall Street as inflationary fears resurfaced and stoked the possibility of recession.

Japan's Nikkei index fell 0.98%, Australia 0.65%, Korea's KOSPI 1.54%, China 1.35% and Hong Kong 2.23%.

The fall reversed gains made on Tuesday session after China announced an easing of its quarantine requirements for inbound passengers.

Oil prices fell slightly after three sessions of gains, but global supply tightness limited losses. A report overnight suggested Saudi Arabia and the United Arab Emirates would not be able to raise output significantly in the near future.

Brent crude futures fell 0.86% to $116.96 a barrel. While US crude was down 0.72% to $110.94.