Asia markets set to fall as investors await key U.S. inflation numbers

Investors are expecting Asia-Pacific stock markets to drop as they await Wednesday's U.S. Inflation figures for clues about the direction of inflation, and therefore the U.S. Federal Reserve.

Dow Jones polled economists who expect that inflation will have increased by 0.4% in April compared to the previous month and 5% compared to last year. Core prices, which exclude volatile energy and food components, should have increased by 0.4%.

Futures in Australia for the S&P/ASX 200 index were trading at 7,235. This is lower than the last close of the index, which was 7,264.1.

Nikkei-225, Japan's stock market index, is also expected to fall on this Wednesday. The Nikkei contract in Chicago closed at 29,215 while the counterpart in Osaka closed at 29,210, compared to its previous close of 29,242.82.

Hong Kong's Hang Seng Index is likely to continue its losses on Tuesday, as futures linked to the Hang Seng are trading at 19,850 against its previous close of 19,867.58.