Inflation worries temper Asian stocks rally

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A report from the US later on Thursday will give direction on interest rate hikes

A pedestrian looks at an electronic stock board displaying the Nikkei 225 Stock Average outside a securities firm in Tokyo, Japan. Picture: BLOOMBERG/KIYOSHI OTA

Japan’s blue-chip Nikkei started the day almost 1% higher before beginning a steady slide that took it close to negative territory. It later rebounded to be 0.33% higher.MSCI’s broadest index of Asia-Pacific shares eked a 0.10% gain. US futures pointed lower though, indicating a 0.28% retreat for the Nasdaq and a 0.23% decline for the S&P .

A more hawkish tone from both the European Central Bank and the Fed last week caught markets off guard, sending yields soaring.

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