Stocks dip in Asia ahead of US inflation figures

Asian markets dropped on Friday, following a weak lead from Wall Street and as investors awaited a key US inflation report due later in the day.

Hong Kong’s Hang Seng Index closed 1.07 percent down at 23,995.72, while Tokyo’s benchmark Nikkei 225 index was down one percent at the close.

Shanghai also slipped.

During the previous trading day, European and US stock markets dropped as traders tracked developments surrounding the Omicron coronavirus variant and fallout from the Chinese property crisis -- snapping a three-day rally.

Traders were awaiting the latest US consumer price data, set for release Friday, which is expected to show inflation climbing higher last month.

And next week’s Federal Reserve meeting might offer clues as to the pace of tapering and interest rate increases.

“It goes without saying that today’s inflation report in the US is the main event,” said Matt Simpson, senior market analyst at City Index. “It hit a 30-year high in October and expectations are for those numbers to be inflated further.

“We can see today’s report as a proxy for next week’s Federal Reserve meeting, because the hotter inflation is the more pressure it piles on the Fed to increase their pace of tapering.”

Elsewhere in Asia Friday, Seoul, Taipei and Singapore were down slightly, while Wellington was marginally up.

Stocks retreated at the open in Europe.