Stocks in Tight Ranges Before US CPI, Yen Weakness – Asia Market Wrap

Stocks in Asia were neutral as traders awaited US inflation data that might impact the timing of the Federal Reserve’s shift to monetary easing.

The yen declined for the first time in six days as Bank of Japan Governor Kazuo Ueda noted some deterioration in nondurable goods consumption while also indicating that the central bank is still on pace to conclude its negative interest-rate policy. Japanese shares fell, while those in Australia and South Korea climbed.

US market futures rose after the S&P 500 and Nasdaq 100 closed modestly lower on Monday. Investors are waiting for additional information on whether the recent increase in US consumer prices was a one-time blip or a sign that the disinflationary trend has reached a wall. After closing at record highs 16 times this year, the S&P 500 is showing signs of overheating, raising concerns about a near-term pullback.