Asian stocks were poised to follow Wall Street lower as traders held back from riskier bets ahead of key inflation data and remained wary over US-Iran developments. The cautious mood reflected uncertainty over whether US CPI figures would reinforce expectations of a prolonged tight monetary policy, while escalating tensions with Iran added a geopolitical risk premium to oil prices.

Investors are bracing for mixed signals. A hotter-than-expected CPI reading could dash hopes for early rate cuts, potentially dragging equity markets further. Meanwhile, the standoff in the Middle East kept crude near recent highs, compounding inflationary concerns for import-dependent Asian economies.

Japan’s Nikkei and Australia’s S&P/ASX 200 futures pointed lower, while Hong Kong and mainland Chinese benchmarks were set for a subdued open. The dollar strengthened slightly against major peers, and Treasury yields edged higher as traders reduced bets on a soft landing.

Asian stocks have been under pressure this week as the Fed’s resolve to keep rates high collides with signs of slowing global demand. Any escalation in the Iran situation could trigger a broader risk-off move, though a benign CPI print might offer a temporary reprieve. Markets are now pricing in a 60% chance of a pause in June, but the data-dependent Fed leaves little room for complacency.