SYDNEY : Asian stocks opened cautiously on Monday as U.S. earnings season gets into full swing, while a raft of Chinese data will offer insight into how the world's second-largest economy is recovering.
"Early April data on the labour market, inflation and consumption all indicate the Fed has more work to do and that a soft or bumpy landing is a greater probability than a sharp and relatively sudden contraction in activity," said analysts at ANZ in a note. This combination of factors made for a slow start on Monday and MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.1 per cent, while Japan's Nikkei inched up 0.3 per cent.
"Demand for consumer goods has already softened and now we're watching services," said Subramanian."Airlines, hotels and restaurants are feeling pressure from slowing macro, tough comps and no respite from wage pressure." Futures have 37 basis points of ECB tightening priced for the May meeting and 82 basis points by December.