TOKYO : An index of Asian stocks eased back from more than two-week highs on Tuesday as traders squared positions heading into a key U.S. inflation report, although mainland Chinese shares and Japanese equities bucked the trend.
Hong Kong's Hang Seng dropped 0.4 per cent, while Australia's benchmark lost 0.2 per cent and South Korea's Kospi declined 0.4 per cent. Investors are keenly focused on Wednesday's U.S. consumer inflation report after Federal Reserve chair Jerome Powell said last week that policy decisions will be"driven by incoming data," while signaling a likely pause in the rate hiking cycle.
"If we were to get a 4 print, I think you're going to get a great deal of fanfare, at least in the initial instance," with U.S. equities likely to push back to the top of recent ranges, he said.