(Bloomberg) — Asian stocks were muted Tuesday, following a subdued session on Wall Street as investors positioned for this week’s Federal Reserve decision and US inflation data.
Shares in Japan and Korea posted early gains, while those in China and Hong Kong edged lower as they reopened after a public holiday. Australia was the region’s worst performer, with the benchmark falling more than 1%. Traders are bracing for possible volatility following the US macroeconomic catalysts, and the potential for more political uncertainty in Europe.
Treasuries crept higher in Asia with the 10-year yield dropping two basis points, while the dollar gained versus most of its major peers. Australia’s 10-year yield jumped, mainly catching up with Friday’s move in Treasuries as traders pushed out their timeline for Fed interest-rate cuts.
Wall Street’s most-prominent trading desks from JPMorgan Chase & Co. to Citigroup Inc. are urging…
