Asian stocks declined on Wednesday in advance of a crucial inflation report and as the US debt ceiling impasse dampens investor sentiment.
The Australian S&P/ASX 200 dipped 0.17% as of 9:52 AM Bangkok time after the country released its budget on Tuesday night. For the first time since 2008, Australia has a budget surplus.
Japan’s Nikkei 225 fell 0.44%. Meanwhile South Korea’s Kospi fell 0.1%, despite the nation’s unemployment rate falling to 2.6% in April.
The Hang Seng index in Hong Kong sank 0.59%, and the Shanghai Composite index in mainland China fell 0.99%.
All three major U.S. indices closed lower overnight, with the S&P 500 declining by 0.46% and the Nasdaq Composite falling 0.6%. The Dow Jones Industrial Average fell by 0.17%.
Economists polled by Dow Jones anticipate inflation of 0.4% month-over-month and 5% year-over-year in April. It is anticipated that core inflation, which does not include the very erratic costs of food and energy, increased by 0.4%.