Asia Stocks, US Futures Fall After Hot CPI Print: Markets Wrap
Asian stocks declined on Wednesday after U.S. futures dropped following a stronger-than-expected inflation reading.
The MSCI Asia Pacific Index fell 0.5% as of 11:20 a.m. in Tokyo, with the regional benchmark heading for its fourth consecutive decline. The Japanese Topix index dropped 0.7%. South Korea’s Kospi index declined 0.3%, while Australia’s S&P/ASX 200 index slipped 0.1%.
The U.S. 10-year Treasury yield rose to 1.71% after the Labor Department reported that consumer prices rose 0.6% in April, above estimates of 0.4%. The jump in the inflation rate has raised concerns that the Federal Reserve may soon start to tighten monetary policy.
In Hong Kong, the Hang Seng index was down 0.7%, while the Shanghai Composite was flat.
In the currency markets, the Japanese yen was steady at 109.21 per dollar. The offshore Chinese yuan was also little changed at 6.46 per dollar.
Investors are also keeping an eye on developments in the Sino-U.S. trade negotiations. U.S. President Joe Biden said Tuesday that his administration was in talks with China on a range of issues, including trade.
Elsewhere, oil prices were little changed, with Brent crude futures trading at $68.86 a barrel. Gold was also steady at $1,873.04 an ounce.
