Asia Pacific stock markets continue slide as Chinese inflation weakens

Investors have taken fright at the prospect that the US Fed could raise interest rates at the point when China is experiencing persistently weak demand

Stock markets in Asia Pacific have continued to slide as the spectre of higher borrowing costs in the United States and further signs of weakness in China prompted investors to trim their exposure to riskier assets.

The recent rally that followed the market selloff in July and August has petered out as poor Chinese inflation figures on Tuesday pointed to persistent weak demand in the world's second biggest economy.

Related: US Federal Reserve is right to raise interest rates, yet risk remains