Asian shares fell on Monday while the dollar drifted higher at the start of a hectic week, as markets awaited a flurry of rate decisions from the U.S. Federal Reserve, the European Central Bank and others.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) slid 1%, after rising 1.3% the previous week, buoyed by optimism that China is finally opening up its economy with the dismantling of its zero-COVID policy.
Japan’s Nikkei (.N225) eased 0.3%. The S&P 500 futures dipped 0.2% and Nasdaq futures dropped 0.3%.
In China, blue-chip shares (.CSI300) were 0.5% lower, while Hong Kong’s Hang Seng index (.HSI) was down 1%, as investors focused on a rapid wave of COVID-19 infection disrupting the economy.
On Friday, Wall Street dropped, Treasury yields advanced and the dollar pared earlier losses.
A U.S. consumer price index (CPI) report on Tuesday will set the tone for markets for the week. Economists expect core annual inflation to ease to 6.1% in November, compared with a rise of 6.3% seen in the previous month.
Risk could be on the upside, after data on Friday showed producer prices had increased faster than expected, fuelling concerns the CPI report may indicate inflation is sticky and interest rates may have to stay higher for longer.
This report’s information was first seen on REUTERS; to read more, click this link.
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