Asian Stocks Lose Gains as Yen & Dollar Gain Ground – Asia Market Wrap

Asian shares fell as the Dollar and Yen rose versus peers, with markets becoming more risk-averse ahead of US data later this week, which could provide indications on Fed rate reduction.

Shares in Australia and Hong Kong sank, while Tokyo and mainland China were neutral. US market futures fell ahead of Wall Street’s reopening later Tuesday, after the Labour Day public holiday.

Treasury yields were barely changed, while a Dollar strength index increased. The Yen strengthened against the Dollar after falling for four straight sessions.

The South Korean won fell as August inflation statistics indicated that year-on-year prices rose at the weakest rate since 2021. The Australian Dollar weakened as iron ore prices decreased.

Asian traders will be closely watching for further signs of an economic crisis in China. Data released on Saturday revealed that Chinese manufacturing activity fell for the fourth consecutive month in August, the latest warning that the world’s second-largest economy may fail to fulfil this year’s growth targets.