Asian Stocks Fall as Traders Watch for Signs of Inflation – Asia Market Wrap

Asian stocks declined as traders braced themselves for a week of political unpredictability and inflation data that might influence wagers on the direction of interest rates around the world.

As top currency official Masato Kanda stated that authorities are prepared to step in to support the Japanese yen 24 hours a day, if necessary, the Yen was trading below 160 per dollar. There was minimal variation in an Asian currency measure.

Futures for US and European stocks also declined following Friday’s S&P 500 decline.

The changes occur at a crucial time for market positioning heading into the second half of 2024, as uncertainty surrounds central bank policy rates from New Zealand to Japan and the US. While the Fed’s preferred measure of consumer costs and Australia’s and Tokyo’s inflation prints may provide some indications, political risks remain significant.