Asian stocks showed little movement on Monday as investors braced for a pivotal week of economic data, particularly the release of U.S. CPI figures, which could offer fresh insights into the Federal Reserve’s policy path. The U.S. dollar softened, reflecting caution ahead of the inflation data, while government bond yields held steady.
Trading in key Asian markets was subdued, with Japan’s Nikkei and Hong Kong’s Hang Seng Index posting marginal gains. The Chinese yuan edged higher after Beijing pledged additional support for its struggling property sector. Market participants remained cautious, anticipating that the CPI report could shape expectations for interest rate decisions in 2024, particularly as inflation remains a concern in the U.S.
The market’s focus remains firmly on the U.S. inflation trajectory and how it may influence Fed policy, adding uncertainty to global equities and currencies.
