## Asian Shares Dither as Investors Await US Inflation Data
Asian shares traded sideways on Monday as investors remained cautious ahead of key US inflation data this week. The data, particularly the core personal consumption expenditure (PCE) price index, could influence the Federal Reserve's decision on interest rates, with a higher-than-expected reading potentially derailing hopes for a June rate cut.
China's Central Bank Stabilizes Yuan
The Chinese central bank intervened to stabilize the yuan, setting a firmer fix for the currency and nudging the dollar lower. This move followed a period of weakness for the yuan, which had been pressured by concerns over the global economic outlook.
European Inflation Data in Focus
European markets will also be closely watching inflation data this week, with consumer price figures due from France, Italy, Belgium, and Spain. The overall EU CPI report is scheduled for release on April 3rd.
Global Equity Markets Supported by Easing Expectations
Expectations of falling borrowing costs globally have provided a boost to equity markets, with the S&P 500 up almost 10% year-to-date. However, Asian shares remained flat on Monday, just below eight-month highs.
Japan's Nikkei Dips After Strong Rally
Japan's Nikkei index dipped 0.6% on Monday, following a 5.6% surge last week that pushed it to a fresh all-time high. The yen's recent weakness has supported the Nikkei's rally.
Dollar Strength Continues
The dollar continued its recent strength on Monday, supported by the dovish stance of major central banks, including the Swiss National Bank and the Bank of England. The dollar's rise has weighed on gold prices, although the metal edged higher on Monday.
Oil Prices Supported by Ukraine Conflict and US Rig Count Data
Oil prices were underpinned by Ukraine's attacks on Russian refineries and data showing a fall in US rig counts. Brent crude rose 46 cents to $85.89 a barrel, while US crude firmed 48 cents to $81.11 per barrel.