Asian stocks edge higher ahead of US inflation data
inflation report later in the day that will set the tone for the week filled with central bank meetings.
The U.S. Federal Reserve is widely expected to hold rates on Wednesday, with the spotlight squarely on comments from Chair Jerome Powell during his press conference as well as the central bank's dot plot and summary economic projections.
Before that, the U.S. Labor Department's Consumer Price Index (CPI) report later on Tuesday is expected to show inflation still cooling but staying well above the Fed's 2% annual target, with core CPI expected to come in at 4%.
That has meant investors are hesitant in placing major bets, with MSCI's broadest index of Asia-Pacific shares outside Japan 0.38% higher.
Japan's Nikkei rose 0.72%.
«Should core CPI come in at or above 4.2% year-over-year, equity traders will likely rush to hit the sell button first and ask questions later,» said IG market analyst Tony Sycamore.
«Should core CPI print at 3.9% or less, it would be the green light for equity markets to extend gains into year-end.»
Overnight, U.S. stocks registered modest gains but managed to close at new highs for the year.
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In China, blue-chip stocks eased 0.28%, while Hong Kong's Hang Seng index fell 0.20% as investors looked for signs of policy support after data showed China's November consumer prices posted their fastest fall in three years.
In a busy week for central bankers, the European Central Bank, Bank of England, Norges Bank and the Swiss National Bank all also meet on Thursday.
Investors have steadily dialled back some of the expectations of the Fed cutting rates early next year. Markets are now pricing in a 45% chance of a rate cut in March compared with 57% a week earlier, according to CME FedWatch
