Asia stocks slip as US CPI fails to enthuse; dollar up

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SYDNEY : 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

SYDNEY : 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.

MSCI's broadest index of Asia-Pacific shares outside Japan edged 0.2 per cent lower and headed for a 1 per cent weekly loss. "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.

"That fuelled concerns that the markets are struggling to digest what is now a meaningfully larger supply story from the U.S. Treasury," said Sally Auld, chief investment officer at wealth manager JB Were in Sydney. In stock markets, Chinese property stocks were taking a fresh beating on giant developer Country Garden, which is struggling with its debts, forecasting a $7.6 billion net loss in the first half. Country Garden stock fell 11 per cent. An index of mainland developers fell 2.3 per cent to a nearly three-week low.

 

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