Asian stocks to open lower amid Gulf tensions, US CPI
Asian stocks are likely to open lower on Wednesday, with traders keeping a close watch on the upcoming US inflation report and rising tensions in the Persian Gulf.
Markets in Australia and Hong Kong point to losses after Wall Street's drop, especially with U.S.-listed Chinese stocks sliding nearly 3%.
Tokyo is also expected to add to the negative mood as it reopens after a holiday.
Oil near $83 amid Iran threat
Oil is holding around $83 per barrel while Iran has threatened to close the Strait of Hormuz, making energy markets uneasy. Hopes for a U.S.-Iran deal have faded for now.
Meanwhile, the Japanese yen is slipping against the dollar, so much that Japan might step in to stabilize things.
Investors are waiting for US inflation numbers; as Dennis Follmer from Montis Financial puts it, "I expect the CPI report to continue its downward trend which will further support the case for the Federal Reserve to hold rates steady rather than hiking them, even with last Friday's weak jobs report." Follmer said at Montis Financial.