Asian stocks mostly higher as traders brace for inflation data

Asian stocks rose slightly, but the US dollar stayed at three-month lows as investors remained certain the Federal Reserve had completed its rate-hike cycle and looked ahead to a key inflation report later this week.

MSCI’s broadest index of Asia-Pacific equities outside Japan was 0.29% higher and on track to gain about 7% in November, its best monthly performance since January.

However, European stock markets were poised to begin flat, with Eurostoxx 50 futures down 0.11%, German DAX futures down 0.18%, and FTSE futures down 0.09%. Stock futures in the United States were slightly moved.

This week, investors will pay close attention to the Fed’s favored measure of inflation on Thursday, as well as eurozone consumer inflation numbers, for further clarity on where prices and monetary policy are heading.

“As Japanese and American stocks are at high levels driven by higher bonds, a sell-off is likely to occur for profit, and hopes for ending the downturn and improving the efficiency of corporate capital continue to provide a strong outlook for Japanese stocks,” said Ryota Otsuka, strategist at Toyo Securities.

Treasury bonds continued the rise that began on Monday, which led to a decrease in the yield on two-year bonds, which are sensitive to the Fed’s interest rate path, by more than three basis points to 4.85%.

The benchmark 10-year yield stabilized after falling eight basis points to about 4.4%. Australian and New Zealand bonds fell during the early hours of Asian trading.