Asian markets struggled Tuesday to extend a Wall Street and European rally as traders nervously await US inflation data, while lingering concerns about China's economy remain a millstone. Equities have struggled so far this month on concerns that recent figures pointing to a resilient economy and jobs market will pressure the bank to tighten once more this year as it looks to defeat inflation.
The consumer price index report is one of the key indicators that help guide the Federal Reserve's policy decision-making, and next week's meeting is expected to see officials hold interest rates, its statement will be pored over for its thinking for the future.
With boss Jerome Powell insisting that choices would be based on incoming data, investors have taken weak economic readings as being good news for the rates outlook. A group of leading economists at some of the world's biggest banks said they did not expect the Fed would hike again and would begin slashing borrowing costs in the new year, while they also predicted the United States would avoid a recession.