Stocks in Asia drifted at the start of the week as traders refrained from making riskier bets after lackluster economic data spurred a selloff on Wall Street.
The dollar declined against its peers, notably the euro. Benchmarks in Hong Kong and mainland China, which got a lift from technology stocks this year, traded in tight range.
A gauge of Asian equities edged lower after hitting a four-month high Friday. US equity index futures advanced, as did contracts on Germany’s benchmark stock index after the conservative party came in first in the country’s federal election.
The prospects for artificial intelligence has fueled a rally in Chinese technology stocks, offsetting the risks from US tariffs and shifting wagers on Federal Reserve policy easing.
Data late last week showed US inflation expectations rising to the highest level in almost three decades.
“People have not believed in the innovation power of China but also it’s massively under-owned by foreigners,” said Virginie Maisonneuve, global chief investment officer equity at Allianz Global Investors.
“I do think you will see some allocation from global funds into China, particularly into the tech area.”
