(Bloomberg) — European stocks are poised for a muted start after Asian stocks fell on a rout in tech stocks. The yen was volatile.

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Euro Stoxx 50 futures were little changed, tracking similar figures from U.S. equity futures, which steadied after a tech selloff on Thursday.

An index of Asian technology shares fell as much as 3.6 percent, with losses concentrated in Japan, South Korea and Taiwan. That came after the Nasdaq 100 fell 2.2 percent as inflation data bolstered the case for rate cuts, fueling an exit from the long-favored safety trade of technology majors.

Despite the latest setback, global stocks are poised for their sixth weekly gain, their longest since March, as the Fed’s rate easing boosts the overall risk sentiment. US inflation data led traders to fully cut interest rates in September.

The yen rose on Friday as the Bank of Japan conducted so-called rate controls with traders, fueling the perception that authorities intervened in the market on Thursday to support the currency.

“Now they’ve shown their hand and they’ve intervened, they kind of have to continue to intervene just to maintain the credibility of that intervention,” said Adarsh ​​Sinha, co-head of Asia FX & Rates strategy at BofA Securities. Bloomberg Television on Japan’s Finance Ministry. “It’s still a difficult task.”

The regional stock benchmark was headed for its worst day in nearly six weeks as Japanese and Korean stocks fell. Shares in Hong Kong and Australia moved higher.

“We’re seeing a shift from more tech markets like Taiwan and Korea because of the overnight drop in tech in the US,” said Gary Tan, portfolio manager at Allspring Global Investments.

Chinese shares traded in Hong Kong on pace for their best day in three weeks, supported by some expectations of policy support from the upcoming Tuesday Plenary Session on the mainland. An index of Chinese property developers jumped as much as 6.3 percent.

“If the shift to value is intact, Chinese stocks may see some support,” said Jun Rong Yeap, market strategist at IG Asia Pte. Couple that with “more restrictions on short selling activity lately, which provides room for the prevailing bearish sentiments to ease,” he said.

Bond yields were flat after the prospect of lower US interest rates had sent 10-year yields seven basis points lower to 4.21% in the previous session. Australian and New Zealand government bonds rose on cue from their US counterparts.

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The dollar index was flat after Thursday’s slide by the widest margin since May.

Fed Bank of Chicago President Austan Goolsbee described the CPI data as “excellent,” saying the report provided the data he had been waiting for to be confident the central bank is on track toward its 2 percent target.

For Chris Larkin at E*Trade from Morgan Stanley, Thursday’s “Fed-friendly CPI” was another step toward a rate cut in September. A lingering question is whether this high-flying stock has already been priced into multiple declines, he noted.

In Asian fundamentals, China’s trade surplus jumped to its highest level since at least 1990 in June as exports rose more than expected while imports unexpectedly weakened. Other reports due on Friday include Japan’s industrial production and India’s inflation. Data on China’s money supply and new loans may also not be released until Friday.

In Europe, Ericsson AB’s earnings beat analysts’ expectations in the second quarter, helped by cost-cutting measures to deal with what the Swedish company called a “challenging market environment.”

West Texas Intermediate crude rose for a third day on Friday, helped by the CPI. Gold retreated after a sharp rally on Thursday.

Key events this week:

• University of Michigan consumer sentiment, US PPI, Friday

• Citigroup, JPMorgan and Wells Fargo earnings Friday

Some of the main movements in the markets:

inventories

• S&P 500 futures were unchanged at 2:40 p.m. Tokyo time

• Nasdaq 100 futures fell 0.1%

• Japan’s Topix fell 1.3%

• Australia’s S&P/ASX 200 rose 0.8%

• Hong Kong’s Hang Seng rose 2.2%

• The Shanghai Composite was little changed

• Euro Stoxx 50 futures were little changed

currency

• The Bloomberg Dollar Spot index was little changed

• The euro was little changed at $1.0870

• The Japanese yen fell 0.1% to 159.07 per dollar

• The offshore yuan was down 0.1% at 7.2751 per dollar

Cryptocurrencies

• Bitcoin fell 0.9% to $57,063.41

• Ether fell 1% to $3,084.36

Bindings

Goods

• West Texas Intermediate crude oil rose 0.4% to $82.91 a barrel

• Spot gold fell 0.4% to $2,405.95 an ounce

This story was created with help from Bloomberg Automation.

–With help from Charlotte Yang.

(Updates with prices, an earlier version corrected the description of the US core CPI.)

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