Japan’s currency slumped to a 34-year low on Wednesday while China’s yuan was also feeling the strain

Investors were distracted by China’s continuing economic struggles and looming US inflation figures

Traders are on edge this week ahead of US inflation data that could scupper hopes for lower interest rates sometime soon

China and Japan’s currencies were both under pressure on Friday, panicking investors and central banks across the region

The US Fed signalled it was ready to reverse on rates in the coming months, lifting sentiment across the region

There was an air of caution on Asia’s trading floors ahead of the US Fed’s latest update and news on the prospects for rate cuts any time soon

The Bank of Japan shifted away from years of ultra-easy monetary policy lifting the Nikkei past the 40,000 mark but China’s property problems weighed elsewhere

Several central banks meet this week though most eyes will be on Japan where the BoJ is widely tipped to end eight years of negative interest rates

Japan was also in the global market spotlight amid speculation that the Bank of Japan could exit its ultra-dovish monetary policies at its two-day meeting ending next Tuesday

In Hong Kong, shares of biotech firm WuXi AppTec fell 12% on news that a US-based global trade association representing biotechnology companies sought to “separate” from it

Stocks across the region slipped into the red with investors in cautious mood ahead of key decisions out of Beijing and Tokyo

Hong Kong’s benchmark was the star performer on Tuesday as buyback bets and policy hopes lifted sentiment while the record-breaking Nikkei dipped