- Asian markets and futures in the US moved ahead of a major inflation print in the US, which is likely to support the case for tighter monetary policy.

- A measure of Asia Pacific equities fell, with Japan suffering just minor losses. Hong Kong and China both fell. Contracts for the S&P 500 were barely changed after the benchmark had its longest losing run since September, while dip buyers emerged late in the day to wipe off almost all intraday losses.

- Treasuries were firm, but Australian and Japanese bonds rose following recent losses. The yield curve in the US flattened as market-implied probabilities of a March rate hike increased. The US currency fell.

- A key gauge of US inflation, due out Wednesday, is expected to have grown more in December, placing additional pressure on the Fed to tighten policy.