Major Asian indexes on Monday are expected to focus on Wall Street’s firmer Friday close as investors await the release of China inflation data.
U.S. September consumer prices released Friday were softer than expected. Still, although the headline 0.5 percent increase was below the 0.6 percent predicted in a Reuters poll, the rise in prices was the largest monthly increase in eight months.
Despite the weaker-than-expected number, Federal Reserve Chair Janet Yellen appeared positive on the inflation outlook in the months ahead in a Sunday speech, Reuters said. Yellen indicated that inflation was likely to improve despite the unexpectedly low levels seen this year.
The dollar initially slid following the lackluster data release, but later recouped losses. The dollar index, which tracks the greenback against a basket of six currencies, stood at 93.144 by 6:48 a.m. HK/SIN, above a low of 92.749 seen on Friday. Against the Japanese currency, the dollar fetched 111.92 yen.
Meanwhile, stocks on Wall Street touched record levels on Friday as earnings season rolled on. The Dow Jones industrial average rose 0.13 percent, or 30.71 points, to close at 22,871.72, the S&P 500 added 0.09 percent, or 2.24 points, to end at 2,553.17 and the Nasdaq closed up 0.22 percent, or 14.29 points, to finish the session at 6,605.8.