Asian shares retreated as traders await key US inflation data for clues on whether the Federal Reserve will cut or hold interest rates next week.
The dollar steadied after a three-day gain. Stocks in Hong Kong and mainland China fell as an annual economic meeting begins in Beijing on Wednesday.
Those in Taiwan and Australia also dropped. South Korean equities rose for a second session, continuing a recovery after last week’s short-lived martial law event that thrust the country into political turmoil.
A Bloomberg index of dollar strength was steady in the runup to American consumer price index data. S&P 500 futures were little changed, while Europe’s slipped.
The US CPI, expected later Wednesday, will offer Fed officials another look at inflation ahead of their next meeting. Swap trading projects about an 85% chance of a quarter-point rate reduction this month.
Meanwhile, China’s two-day Central Economic Work Conference is expected to map out policies for next year, with traders emboldened by stimulus signals from top leaders.
