A gauge of Asian stocks climbed, following the S&P 500 higher as investors await US midterm elections and inflation data later this week. Chinese shares fell.
Japanese equities led gains in the region, while US and European futures edged lower. Technology companies were the biggest losers among Chinese shares, halting their recent rally, as investors considered a jump in virus infections and official comments defending Covid-Zero.
Markets are focused on the elections later Tuesday for potential gridlock in government, which historically has been good for US stocks, and on the consumer price print Thursday for its impact on Federal Reserve interest-rate hikes.
The Bloomberg Dollar Spot Index was little changed after recent declines. The gauge fell 0.4% Monday, extending the 1.7% loss from Friday, which was its worst day since March 2020.
The inflation reading is coming after the core consumer price index rose more than forecast to a 40-year high in September. Even if prices begin to moderate, the CPI is far above the Fed’s comfort zone.
