Asian stocks slipped on Tuesday, their recent recovery stalling after European equities broke a winning streak, while the dollar edged further away from three-year lows.
Spreadbetters expected a mixed start for European stocks, with Britain’s FTSE seen rising 0.1 percent, Germany’s DAX dropping 0.1 percent and France’s CAC dipping 0.07 percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.25 percent. Australian stocks were little changed, South Korea’s KOSPI lost 1.2 percent and Hong Kong’s Hang Seng dropped 0.4 percent.
Japan’s Nikkei retreated 1 percent after three successive days of gains.
The pan-European STOXX index fell 0.6 percent on Monday following a three-day ascent, dragged down by falls in consumer staples stocks.
U.S. markets were closed on Monday for a holiday, and the focus will be on whether Wall Street can maintain its recovery once trading resumes.
The Dow gained 4.5 percent last week, winning back more than half of the territory lost during a sharp downturn earlier in the month.
“Whether other markets can continue their recovery depends to a large degree on how U.S. stocks perform,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management in Tokyo.
“Volatility will also have to keep settling for the broader recovery to continue,” he said.
The VIX index - Wall Street’s “fear gauge” measure of market volatility - has slipped below 20, less than half the 50-point peak touched earlier in February.
Upbeat prospects for global growth helped lift world stocks to record highs earlier this year, although slow wage increases have been a common issue for many economies.
For example Japan has marked its longest economic expansion since the 1980s but wage increases have remained elusive amid long stretches of deflation.
A monthly Reuters survey showed that more than half of companies in the world’s third largest economy do not plan to raise base pay in annual wage talks in coming months.
