SINGAPORE- Asian shares reversed early gains, with investors in Chinese stocks unsettled by US moves against 33 Chinese entities, with markets otherwise waiting for US inflation data that could influence how fast the Federal Reserve raises interest rates.
Traders are alert for rate hikes in both the euro zone and the United States after the European Central Bank last week was considered to have adopted a more hawkish tone.
Euro Stoxx 50 futures eased and FTSE futures edged up 0.1 percent, indicating a mixed start for European equities.
MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.3 percent to 612.3 after rising to 617.7, the highest since January 25. The benchmark is up nearly 3 percent from a more than one-year low of 595.99 struck on Jan 27.
“Much of investors’ concern is focused on the five Fed increases that markets are pricing in for 2022, and if they won’t be sufficient to contain inflation,” Seema Shah, chief strategist at Principal Global Investors, said in a note.
“Yet, the Fed’s urgency to tighten should soon ease as the most acute economic price pressures start fading. Furthermore, while US growth has likely peaked, a recession isn’t in the cards,” she said.
Japan’s Nikkei rose 0.3 percent, Korean stocks went up 0.5 percent and Taiwan gained 0.7 percent.
