"US-China CPI Concerns Trigger Asian Stock Retreat"

Most Asian stocks fell as hotter-than-expected US inflation data and weak Chinese CPI figures eroded hopes for early interest rate cuts by the Federal Reserve, leading to declines in Wall Street indexes and US stock index futures. Chinese stocks also fell after CPI shrank more than expected in March, indicating little signs of economic recovery and rattling regional markets. Concerns over China's economic weakness weighed on broader Asian economies, with losses in mainland stocks dragging down Hong Kong's index and Australian stocks. Uncertainty over potential government intervention to support the yen also dented sentiment towards Japanese markets, while other Asian markets retreated on the prospect of higher-for-longer US interest rates, leading to a significant reduction in expectations for a June rate cut by the Fed.