Asian shares drop as investors awaited US report

Asian markets were shrunk on Monday as investors awaited US inflation data that could impact global rate cuts, Reuters reported on Monday.

The yen rose amid reports of potential changes in Bank of Japan (BOJ) policy. Japan’s economy grew by 0.4 per cent in the last quarter, avoiding a recession.

US CPI is expected to rise by 0.4 per cent in February, with core inflation at 0.3 per cent. Analysts predict multiple rate cuts by the Fed this year, with a possibility of starting in May.

Chinese inflation rose to 0.7 per cent in February, while producer prices remained low. Equities were boosted by expectations of reduced borrowing costs.

MSCI’s Asia-Pacific shares index outside Japan dipped 0.16 per cent after reaching an eight-month high on Friday.

Meanwhile, Japan’s Nikkei fell 2.2 per cent after hitting multiple record highs last week. Chinese blue chips gained 0.57 per cent.