Asian shares slip as traders mull Covid and inflation risks

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Asian shares slip as traders mull Covid and inflation risks
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Dollar holds firm ahead of inflation data that could set direction on Federal Reserve rates

A pedestrian looks at an electronic stock board displaying the Nikkei 225 Stock Average outside a securities firm in Tokyo, Japan. Picture: BLOOMBERG/KIYOSHI OTAAsian shares slipped and the dollar held firm on Friday as traders edged away from riskier assets amid renewed concerns about Covid-19 and ahead of key US inflation data that could set direction on Federal Reserve rates.Overnight the S&P 500 lost 0.72% and the Nasdaq Composite dropped 1.71%. S&P 500 futures rose 0.

“Then, as we got towards the end of the week the fact that Europe was much more clearly moving into a sort of lockdown light and cases are going up, and Covid-19 case numbers in the US are starting to ratchet up flipped things a little bit,” said Rob Carnell, head of research Asia Pacific at ING. The US consumer price index for November is due later on Friday and a Reuters poll of economists expect it to have risen 6.8% year on year, overtaking a 6.2% increase in October, which was the fastest gain in 31 years.

“This issue has been going on for two and a half months now, and markets don’t seem to be as fussed because a default on Evergrande’s offshore debt has seemed highly likely,” said Shane Oliver, head of investment strategy at AMP Capital.

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