Asian stocks saw choppy trading as traders awaited US inflation data for clues on the path of Federal Reserve policy. The yen gained.
The MSCI Asia Pacific Index was up less than 0.1%, with shares in Japan and Hong Kong turning lower. European equity futures edged higher while contracts for US stocks were little changed. The dollar gauge steadied after dropping 0.4% in the previous session.
The consumer price report comes at a crucial time for global markets, after a spate of solid US economic data trimmed Fed rate cut expectations and triggered a debt selloff.
Wednesday’s muted moves are in contrast to risk-on gains in Asia in the previous session, when a report that Donald Trump’s incoming team is considering gradual tariff hikes buoyed sentiment.
A hot US CPI print “will translate into a higher dollar and higher rates, meaning general tightening of financial conditions for Asia,” said Kok Hoong Wong, head of institutional equities sales trading at Maybank Securities.
“We expect a quieter session today, especially after some larges moves in Japanese and Chinese stocks yesterday.”
