Asia stocks drop to month low as US CPI fails to enthuse

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SYDNEY : Asian stocks hit a one-month low and logged a weekly loss on Friday while the dollar headed for a month of gains after U.S. inflation came in steady without surprising on the low side.Soft demand at a 30-year Treasury auction and a blowout in the U.S. budget deficit also weighed on bonds, and the

SYDNEY : Asian stocks hit a one-month low and logged a weekly loss on Friday while the dollar headed for a month of gains after U.S. inflation came in steady without surprising on the low side.

U.S. stock futures were flat and European futures fell 0.5 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7 per cent with stocks in Hong Kong and China the biggest drag. It was down 1.6 per cent for the week. "I think the market was hoping with that inflation data that we'd hear Fed speakers say it's unlikely we'll have to hike any further, and the next move is a cut," said Andrew Lilley, chief rates strategist at investment bank Barrenjoey in Sydney.

Australian government bonds came under pressure in Asia on Friday, though outgoing Australian central bank chief Philip Lowe told lawmakers the worst was over for inflation and policy has now entered a"calibration stage". The euro is down marginally for the week at $1.0988. The yen was eyeing a weekly loss of 2 per cent as traders judged the Bank of Japan's looser limit on 10-year yields as buying time for shorter-dated rates to stay low.

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Asia stocks slip as US CPI fails to enthuse; dollar upSYDNEY : Asian stocks edged towards a weekly loss on Friday and the U.S. dollar was headed for a month of gains after U.S. inflation came in steady, without the hoped-for surprise on the downside.Soft demand at a 30-year Treasury auction and a blowout in the U.S. budget deficit last month also weighed on
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