Asia stocks dip ahead of US inflation data

Asia shares fell on Monday as investors awaited US price data to gauge inflation. Markets were also watching for potential Japanese intervention as the dollar approached 160 yen.

MSCI Asia-Pacific index outside Japan fell 0.8 per cent after reaching a two-year high last week. South Korean stocks see a similar decline.

S&P 500 and Nasdaq futures hover near flat levels. Boeing shares could face pressure due to potential criminal charges.

EUROSTOXX 50 futures down 0.1 per cent, FTSE futures down 0.3 per cent.

Nikkei edged up 0.7 per cent as weakening yen pressures the Bank of Japan for tighter policy. Minutes from the central bank’s meeting reveal discussions on tapering bond buying and raising rates.

Dollar traded near 159.74 yen, eyeing the 160.245 peak where Japan is suspected to have intervened. Australian and New Zealand dollars reached 17-year highs on the yen due to carry trades. Euro tested recent highs at 170.87 yen despite weak manufacturing surveys.

Gold feels the pressure of a strong dollar, trading at $2,324 an ounce. Oil prices eased slightly after last week’s gains. Brent crude down 7 cents to $85.17, US crude down 7 cents to $80.66 per barrel.

Investors await Friday’s release of the Personal Consumption Expenditures (PCE) price index, with expectations of a slowdown in core inflation to 2.6 per cent in May, the lowest in over three years.

Attribution: Reuters