Asian Stocks Eye Sluggish Start After China Data: Markets Wrap

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(Bloomberg) -- Asian stocks are set for a sluggish open Monday amid signs of a slowing US economy and weekend data that signaled weak demand in China. Most...

-- Asian stocks are set for a sluggish open Monday amid signs of a slowing US economy and weekend data that signaled weak demand in China.Equity futures in Australia, Japan, Hong Kong and mainland China all point to slight losses. US contracts edged lower after the S&P 500 struggled to gain traction Friday as consumer sentiment declined to a six-month low and short-term inflation expectations picked up, posing a challenge to the outlook for Federal Reserve policy.

The US April inflation print on Wednesday is poised to provide the biggest test yet of this month’s rally that was sparked when Fed Chair Jerome Powell swatted away worries that the central bank may raise interest rates again. After all but erasing expectations of rate cuts this year, traders are pricing a better than even chance of a September move despite officials including Dallas Fed President Lorie Logan indicating it’s too early to think about easing policy.

Elsewhere this week, China delivers a policy rate decision, the Eurozone is set to report inflation and growth figures while a swath of Fed officials are due to speak including Powell. Australian jobs data is due and the nation’s government will deliver its spending plans for the year ahead.The Japanese yen was little changed at 155.

 

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