Asian equities saw mixed movement on Monday as traders braced for the release of key US inflation data. Japan’s Nikkei 225 edged higher, supported by optimism over corporate earnings, while Hong Kong’s Hang Seng Index slipped amid ongoing concerns about China’s property sector. Sentiment remained cautious as markets speculated on the Federal Reserve’s next policy steps.
The US Consumer Price Index (CPI) report, due later this week, is expected to shape expectations for further rate hikes. Analysts predict a slight increase in core inflation, keeping pressure on the Federal Reserve to maintain a restrictive stance. Regional currencies, including the Japanese yen, faced mild selling as the US dollar firmed ahead of the data release.
Meanwhile, China’s economic outlook weighed heavily on investor sentiment. Weak industrial and retail figures last week have heightened concerns over the recovery pace, despite recent government support measures. Investors are eyeing the yuan’s performance and its impact on trade-reliant economies in the region.
In commodities, oil prices held steady after last week’s rally, providing little direction for energy-linked stocks. Brent crude traded around $75 per barrel, with markets awaiting fresh cues from US inflation data and its implications for global growth. The week ahead is poised to test traders’ resilience amid a flurry of economic releases and geopolitical developments.
