Asia shares slip as dollar jumps on reduced Fed rate cut expectations

Asian markets dipped Wednesday as stronger U.S. inflation data fueled bets the Federal Reserve may delay rate cuts. The dollar hit a three-month high against the yen, while Treasury yields climbed.

Tech stocks held firm after Nvidia’s 4% rally, but broader markets struggled. U.S. consumer prices rose 0.3% in June, the biggest jump since January, driven partly by tariffs. Traders now see just 43 basis points of cuts this year, with a 56.5% chance of a September move.

Compare Top Forex brokers and start trading and investing with a trusted partner

Australia and South Korea’s benchmarks fell 0.6%, while Japan’s Nikkei was flat. Hong Kong and Taiwan rose on tech strength. Investors await U.S. producer price data for more inflation clues.

The dollar hovered near multi-week highs, with USD/JPY at 148.785. Bitcoin steadied around $117,700 after recent volatility, while gold edged up to $3,332. Oil slipped slightly, with Brent at $69.16.

Bank earnings remain in focus after mixed results from JPMorgan and Citigroup. Wells Fargo trimmed its 2025 outlook despite a profit beat. Goldman Sachs and Bank of America report next.