Asian stocks slipped Monday as investors weighed an uneven global recovery from the pandemic against the latest upbeat economic assessment from Federal Reserve Chair Jerome Powell. The dollar ticked up.

Shares in China and Hong Kong underperformed, even as Alibaba Group Holding Ltd. rallied after the imposition of a record antitrust fine removed a regulatory overhang. U.S. equity futures retreated following a third straight week of gains for the S&P 500 Index, with investors bracing for earnings reports this week. European contracts were marginally in the red.

The yield on 10-year Treasuries held Friday’s advance on stronger-than-expected producer-price inflation data and ahead of a heavy week of supply.

China Led The Recovery Trade; Now Almost Everyone Is Cautious

While the U.S. recovery is accelerating, risks from rising Covid-19 cases and lagging vaccination levels elsewhere persist. Traders are also concerned that exceptional government spending and central-bank stimulus could drive excessive inflation. U.S. consumer-price data are due Tuesday.

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