Most Asian stocks slipped Tuesday as investors await more clues on whether the recovery from the pandemic will stoke price pressures and imperil loose monetary policy.
The dollar climbed. Shares from Japan to Australia pared or reversed gains. U.S. futures gave back earlier climbs, leaving S&P 500 contracts steady and those on the Nasdaq 100 slightly higher.
The S&P 500 closed near a record overnight, while a rally in Biogen Inc. on approval of its Alzheimer’s drug boosted the Nasdaq 100. Ten-year U.S. Treasury yields slipped. Traders are awaiting the U.S. inflation report to assess price pressures and expectations that the Federal Reserve is getting closer to starting talks about tapering asset purchases.
Oil extended a decline, losing some momentum after hitting $70 a barrel in New York for the first time in over two years. Digital tokens including Bitcoin retreated, with the Bloomberg Galaxy Crypto Index shedding as much as 10%. Global equities continue to hover around all-time highs and cross-asset volatility has ebbed, underpinned by the economic reopening from the health crisis and central bank support.
But there are concerns about how long the calm can last given that policy makers will eventually pare back stimulus as the recovery builds.
