Asian stocks echoed a rebound on Wall Street as traders awaited US inflation data due this week for clues on the size of the Federal Reserve’s coming interest-rate cut.

Shares in Tokyo and Sydney registered modest gains following a positive session in US equities that was fueled by renewed dip-buying. Stocks in Seoul were little changed. Benchmark Treasuries yields edged up while the dollar advanced.

The report on US consumer prices due Wednesday may help shape the outlook for Fed policy after traders pared the chance of a half-point rate reduction at the September meeting to about 20% from as high as 50% last week. Separately, traders are also awaiting China’s trade figures a day after data showed deflationary pressures in the world’s second-largest economy are spiralling.

“Markets are questioning whether the Fed can still go for a jumbo rate cut next week, and that is helping the US dollar to claw back some gains,” said Charu Chanana, head of FX strategy at Saxo Markets in Singapore. “This week, focus also moves away from the economic trajectory towards US elections and that is likely aiding the US dollar as well.”

Australian bond yields drifted lower early Tuesday.

In Asia, China hawks in the US House overcame a last-ditch lobbying effort to pass legislation that would blacklist Chinese biotech companies and their US subsidiaries. The bill now goes to the Senate.

Traders in Asia will also be closely watching iron ore on Tuesday, which in the previous session sank below $90 a ton for the first time since 2022 before closing 1.1% higher. Industrial commodities are facing sustained pressure from tepid Chinese demand and gathering worries over global growth.

On Wednesday, a US government report is expected to show the consumer price index rose 2.6% in August from a year earlier, according to the median forecast of economists surveyed by Bloomberg. That would be the smallest increase since 2021. There will be little new guidance from Fed officials, who are in the traditional blackout period ahead of the Sept. 17-18 meeting.

“Inflation matters,” said Chris Low at FHN Financial. “Weaker numbers might encourage the Fed toward a 50 basis-point cut, while anything higher could lock in 25 basis points.”

Global equities were net sold for the eighth straight week led by North America, according to Goldman Sachs Group Inc.’s prime brokerage desk report for the week ended Sept. 6. The move is a continuation of a trend that, broadly speaking, started in May as funds began a big unwind of their positions in order to get more cash readily on hand for possible dislocations around the US presidential election.

“Slowdowns do not necessarily portend recessions, nor are stock market corrections necessarily the harbinger of bear markets,” said Konstantinos Venetis at TS Lombard. “But the mix of rising macro (growth) and political (US election) uncertainty increasingly puts the burden of proof on the bulls in the near term.”

The S&P 500 rose 1.2% after its worst start to the month on record, according to Bespoke Investment Group data going back to 1953. Nvidia Corp. and Tesla Inc. led gains in megacaps. Apple Inc. introduced the iPhone 16, with Chief Executive Officer Tim Cook saying it was built for artificial intelligence “from the ground up.”

Oil held a one-day gain as a risk-on tone returned to wider markets. Gold held a small advance with markets looking ahead to the US inflation data. Bitcoin fell below $57,000.