Asian stocks dip ahead of US CPI, dollar steady

Asian markets slip as US CPI looms, dollar holds steady

Asian stocks retreated as markets await key US CPI data, crucial for the Fed’s next rate decision. Meanwhile, China’s economic policies and Japan’s inflation metrics remain in focus.

Asian markets slip as US CPI looms, dollar holds steady

Asian stocks fell as investors awaited US inflation data, which could influence the Federal Reserve’s decision on interest rates. The dollar steadied after three days of gains.

Hong Kong and mainland China shares dipped as Beijing’s annual economic meeting began. Taiwan and Australia also saw declines, while South Korea extended its rebound after last week’s political turmoil.

A Bloomberg dollar index held firm, with S&P 500 futures flat and European futures down slightly.

 

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The US CPI report, due Wednesday, is expected to shape the Fed’s next move, with an 85% likelihood of a quarter-point rate cut this month. China’s Central Economic Work Conference is set to outline 2024 policies, with possible fiscal deficit and rate cuts at historic levels, analysts suggest.

Chinese markets reversed early gains, with investor skepticism growing over Beijing’s follow-through on stimulus measures.

In Japan, the yen edged higher after corporate goods inflation hit a 16-month high, but remained weak as traders scaled back bets on a December rate hike.

Oil prices rose ahead of US inflation data and an OPEC market report, while geopolitical tensions simmered over China’s export restrictions and US steel deals.

 

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