Markets mixed after weak Wall St lead, eyes on yen

HONG KONG, China — Asian and European markets were mixed Monday after last week's poor run as investors look ahead to the release of key US inflation data, while eyes are on Japan as the yen sits around three-decade lows.

A forecast-topping read on the US services sector provided further evidence that the world's top economy remained in rude health and dealt a blow to hopes for interest rate cuts.

A surge in the tech sector has helped push markets to record or multi-year highs, but concerns that the buying has gone too far have set in and profit-taking has weighed on equities in recent weeks.

That saw Wall Street end broadly lower Friday, with the better-than-expected read on the US services sector, which is at a more than two-year high, weighing on sentiment.

The next major indicator will come at the end of this week with the personal consumption expenditures (PCE) index -- the Federal Reserve's preferred gauge of inflation -- which could play a key role in the bank's plans for monetary policy.

Decision-makers have pushed back against speculation they could cut interest rates in September, with some even suggesting they are happy to keep them elevated into the new year.

Asian markets got off to a weak start for the week, with Shanghai, Sydney, Seoul, Taipei and Wellington all in negative territory.

Hong Kong was flat, while Tokyo, Bangkok, Mumbai, Singapore, Manila and Jakarta edged higher.

London, Paris and Frankfurt rose.

Investors are also tracking developments in Japan as the yen struggles against the dollar, leading the country's top currency official to warn that authorities were ready to step in to provide support.

The Japanese unit is approaching the 160.17 per dollar mark that forced authorities to intervene in currency markets earlier in the year.

The movement led vice finance minister Masato Kanda to say officials were ready to step in 24 hours a day.

"If there are excessive currency fluctuations, it has a negative impact on the national economy," he said.

"In the event of excessive moves based on speculation, we are prepared to take appropriate action."

The comments have helped keep the yen below 160 but US rate uncertainty was putting fresh