Asian Stocks Dip as Investors Await US Inflation Data

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Asian equities edged lower on Monday, tracking overnight losses on Wall Street, as investors awaited key inflation data from the US and assessed the outlook for monetary policy tightening.

The MSCI Asia Pacific ex-Japan index was down 0.4%, with most major markets in the region in the red. The Hang Seng index in Hong Kong fell 1.4%, while the Nikkei 225 in Tokyo declined 0.25%.

Investors are awaiting the release of US consumer price index (CPI) data on Wednesday, which is expected to show that inflation remained elevated in August. A strong reading could increase pressure on the Federal Reserve to raise interest rates more aggressively.

The Fed is widely expected to raise rates by 25 basis points at its meeting next month, but the timing of any further hikes is uncertain. The central bank is facing a delicate balancing act, trying to cool inflation without derailing economic growth.

The strength of the US dollar is also weighing on sentiment in Asia. The dollar has been rising in recent weeks, as investors seek a safe haven amid global uncertainty.

Overall, the outlook for Asian equities is uncertain in the near term. Investors will be closely watching the US inflation data and the Fed’s reaction to it.

Key Takeaways

  • Asian equities edged lower on Monday, tracking overnight losses on Wall Street.
  • Investors are awaiting key inflation data from the US and assessing the outlook for monetary policy tightening.
  • The Fed is widely expected to raise rates by 25 basis points at its meeting next month, but the timing of any further hikes is uncertain.
  • The strength of the US dollar is also weighing on sentiment in Asia.
  • The outlook for Asian equities is uncertain in the near term.
          

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