Asian shares slide ahead of key US inflation data

Asian stocks fell and the dollar steadied on Wednesday as investors awaited a key US inflation report to provide hints on the Reserve’s future monetary tightening plans. Federal. The Consumer Price Index (CPI) report is due out later today, with markets watching for signs that inflation eased in July despite a strong U.S. job gain. unexpectedly last week.

MSCI’s index of Asia-Pacific shares outside Japan fell 0.51%, while Japan’s Nikkei extended its decline from the previous day and fell 0.65%.

South Korea’s KOSPI lost 0.64%, Australia’s AXJO fell 0.12% and Taiwan’s TAIEX fell 0.70%.

“I don’t think we’ve made it through the bear market – recession risks are present and I don’t think the Fed has done so,” said David Chao, global market strategist for Asia Pacific. finished tightening its active belt”. at Invesco.

“I don’t think the markets have fully discounted these variables. This week’s inflation data will certainly give us more insight into the Fed’s near-term policy outlook.”

Sliding Asian markets tracked Wall Street, closing on Tuesday with all three major indexes falling.

The S&P 500 fell 0.42%, the Dow Jones Industrial Average fell 0.18% and the Nasdaq Composite lost 1.19%.

The dollar reversed overnight losses and is trading sideways in Asia. The dollar index, which measures the safe-haven greenback against six major currencies, was down 0.009% at $106.330.

“This week’s strong CPI could mean the Fed is getting back on its aggressive rate hike path, which should strengthen the dollar,” Chao said.

Oil prices eased slightly after the overnight spike was gone. Brent crude futures fell 15 cents to $96.16 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 22 cents to $90.28.

Gold also rose and fell 0.09% to $1,792.54 an ounce. It briefly broke the $1,800 barrier overnight, for the first time in over a month.

Cryptocurrency Bitcoin, which typically tracks tech stocks, was down 1.08% at $22,891.48.

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