The shares in Asia-Pacific fell in Tuesday morning trade as investors continued to monitor the situation in mainland China.
Later Tuesday, the U.S. inflation data is expected to be out and could provide more clues on the Federal Reserve's policy.
Fanuc's shares dropped more than 3% as the Nikkei fell. The Topix dipped. South Korea's Kospi fell.
The S&P/ASX 200 was fractionally lower.
Very high US inflation will keep alive market expectations for aggressive FOMC tightening in our view.
The S&P 500 fell 1.69% to 4,411.53 while the Dow Jones Industrial Average lost 4% to 34,308.08 overnight. The tech-laden index fell 2.18% to 13,411.96.
The White House expects the consumer price index for March to show inflation that is "extraordinarily elevated."
Carol Kong, senior associate for currency strategy and international economics at Commonwealth Bank of Australia said that very high US inflation will keep alive market expectations for aggressive FOMC tightening.
The Funds rate is expected to be increased by 50 basis points in May and June.
| TICKER | COMPANY | NAME | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|---|
| Nikkei 225 Index | *NIKKEI | 26529.99 | -291.53 | -1.09 | |
| Hang Seng Index | *HSI | 21208.3 | 0 | 0 | |
| S&P/ASX 200 | *ASX 200 | 7466.1 | -19.1 | -0.26 | |
| Shanghai | *SHANGHAI | 3167.13 | 0 | 0 | |
| KOSPI Index | *KOSPI | 2675.33 | -17.77 | -0.66 | |
| CNBC 100 ASIA IDX | *CNBC 100 | 8808.83 | -57.59 | -0.65 |
The U.S. dollar index, which tracks the greenback against a basket of its peers, crossed the 100 level again.
The Japanese currency traded at 125.53 per dollar. The Australian dollar was lower than it was yesterday.
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