Global stocks reverse gains as dollar, yen rally ahead of US Data

Global stocks reversed earlier gains as the dollar and yen resumed its rally.

Asian equities remained flat, with the dollar and yen gaining strength against other currencies, reflecting a cautious approach by traders ahead of upcoming US economic data that may provide insights into potential Federal Reserve rate cuts, News.Az reports citing foreign media.

Stocks in Australia, Hong Kong and South Korea fell, while mainland China shares fluctuated, News.Az reports citing foreign media. Shares in Japan trimmed earlier gains, but were among the best performers in the region, even as the yen strengthened. An index of global shares erased an earlier advance.

European equity futures were little changed, while US contracts fell ahead of Wall Street’s reopening later Tuesday, following the Labor Day public holiday. Treasuries were little changed.

As index of dollar strength reached a two-week high and was on pace for fifth daily advance. The yen’s climb ended a run of weakening against the greenback in the prior four trading days.

The South Korean won weakened after August inflation data showed year-over-year prices rose at the slowest pace since 2021. The Australian dollar fell as iron ore prices dropped.

Traders will be looking ahead to American manufacturing data due later Tuesday for clues about the health of the US economy in a busy week of economic reports that will reach a crescendo on Friday with the nonfarm payrolls data.

Markets are pricing a start to the US easing cycle this month, with a roughly one-in-four chance of a 50 basis-point cut, according to data compiled by Bloomberg.

News.Az