(Bloomberg) — Asian stocks on Wednesday are set to track U.S. declines as concern about faster inflation shadows the economic recovery from the pandemic. A dollar gauge was near the lowest level this year.Futures slipped in Japan and Australia after key U.S. equity benchmarks closed lower and large technology stocks like Amazon.com Inc. and Microsoft Corp. erased gains. U.S. futures dipped as they opened in Asia. A slide in crude on the possibility of more supply from Iran hurt energy stocks. The dollar retreated further and Treasury yields dipped. Markets are closed Wednesday in Hong Kong and South Korea for holidays.Stocks have been volatile after touching a record in early May. Investors have been whipsawed by concerns about accelerating inflation amid elevated commodity prices, as well as a Covid-19 resurgence in countries including India. Traders are awaiting the latest Federal Reserve minutes for clues on how policy makers view price pressures, and any hints of a timeline for tapering stimulus.In Bank of America Corp.’s latest fund manager survey, inflation topped the list of the biggest tail risks, followed by a bond market taper tantrum and asset bubbles. Covid-19 was in fourth place.“The market has been trying to process a very unusual economic environment and a confluence of factors that it has not faced for a long time,” said David Donabedian, chief investment officer of CIBC Private Wealth Management. “I personally would say that the stock market has absorbed it all extremely well because there’s still a high conviction view on earnings being strong.”Bitcoin fell to the lowest since February after the People’s Bank of China reiterated that digital tokens cannot be used as a form of payment. AT&T Inc. plunged the most in the S&P 500 after the company said it plans to spin off its media operations.Here are some key events this week:The Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationEIA crude oil inventory report WednesdaySt. Louis Fed President James Bullard and Atlanta Fed President Raphael Bostic to speak at separate events WednesdayIMF Managing Director Kristalina Georgieva and ECB President Christine Lagarde speak at the Vienna Economic Dialogue ThursdayEuro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22These are some of the main moves in markets:StocksThe S&P 500 fell 0.9%The Nasdaq 100 fell 0.7%Nikkei 225 futures fell 1.2%Australia’s S&P/ASX 200 Index futures fell 1.1%CurrenciesThe yen was at 108.88 per dollarThe offshore yuan traded at 6.4215 per dollarThe Bloomberg Dollar Spot Index fell 0.3%The euro was at $1.2224BondsThe yield on 10-year Treasuries fell one basis point to 1.64%CommoditiesWest Texas Intermediate crude fell 1.2% to $65.49 a barrelGold future were at $1,869.21 an ounceMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
