Asia stocks nudge higher, dollar steady ahead of US inflation report
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Asian stocks inched higher and the dollar held steady on Tuesday ahead of a key U.S. inflation report that could help shape the Federal Reserve's rates outlook and determine the timing of interest rate cuts. MSCI's broadest index of Asia-Pacific shares outside Japan was 0.15% higher in early trading. Japan's Nikkei rose 1.7% to hit a fresh 34-year high. China's financial markets are closed for the Lunar New Year holiday. On Monday, the S&P 500 slipped in the afternoon session after briefly surpassing its record closing high from November 2021. Investor attention this week will be on crucial reports on January's U.S. Consumer Price Index (CPI) and Producer Price Index. Economists expect CPI to rise 2.9% on a year-on-year basis. Traders are still pricing in 111 basis points of cuts this year versus 75 bps of easing projected by the Fed. The yield on 10-year Treasury notes was at 4.172%. The dollar index was little changed at 104.16. U.S. crude rose 0.03% to $76.94 per barrel and gold was at $1,813.50, down 0.01% on the day.
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