Asian shares made a sluggish start on Monday to a week packed with major US and Chinese economic data and the launch of Apple's latest iPhones, while the Nikkei was tantalisingly near heights last visited in 1990.

Japanese shares have been on a tear as hopes for fresh stimulus from a new Prime Minister saw the Nikkei surge 4.3 per cent last week. The Topix has already scaled that peak, but the Nikkei dipped 0.3 per cent ahead of the resistance barrier.

Reports US Democrats were considering proposals to raise taxes on corporations and the wealthy, while not exactly new,could make for a cautious mood.

Adding to concerns about Beijing's regulatory crackdown was an FT report it aimed to break up Alipay, the hugely popular payments app owned by Jack Ma's Ant Group.

China releases a swath of data on retail sales, industrial output and urban investment on Wednesday that analysts fear will show a further slowdown in the world's second biggest economy.

MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.7 per cent, after bouncing on Friday. Chinese blue chips were off 0.3 per cent.

Both Nasdaq futures and S&P 500 futures were up 0.1 per cent, after running into profit taking last week.

Wall Street suffered its worst run since February as doubts about the resilience of the global economic recovery hurt former reopening darlings in energy, hotels and travel.

Apple will be a focus after sliding on Friday following an unfavourable court ruling related to its app store,just days before it unveils the new iPhone line up.

Also highlighting are readings on US consumer prices on Tuesday, which is expected to see core inflation ease a touch to4.2 per cent, while retail sales on Thursday could show another decline as the spread of the Delta variant spooks shoppers.

The importance of the CPI was underlined by Philadelphia Fed President Patrick Harker who told the Nikkei he wanted to start tapering this year just in case the spike in inflation proved more than transitory.

Harker favoured scaling the tapering down over an 8 to 12month period, which is longer than some hawks have touted.

"Global markets are fixated on the timing of tapering of QE by central banks, particularly the Fed," said analysts at ANZ in a note.

"That's unsurprising, given the support that the extra liquidity has provided to equities and assets more generally,"they added. "The latest guidance from senior FOMC officials is that tapering is still very much on the agenda this year, but is unlikely to be announced until November."

Currency and commodities

The tension is only set to mount ahead of the Fed's next meeting on September 21-22, and played a part in nudging US10-year yields up toward a major chart bulwark around 1.38 per cent last week.

The drift higher in yields and the general air of risk aversion helped the dollar recoup some losses last week and left its index at 92.624, off the recent low of 91.941.

The euro has faded back to $1.1806, from the September top of $1.1908, and risks breaking support under$1.1800. The dollar remains sidelined on the yen at 109.93,having spent an entire month trapped in a tiny range of109.40-100.46.

Gold has also had trouble breaking higher and was last flat at $1,788 an ounce, after shedding 2.1 per cent last week when it repeatedly failed to clear resistance above $1,1830.

Oil prices firmed on Monday supported by growing signs of supply tightness in the United States as a result of HurricaneIda. About three-quarters of the US Gulf's offshore oil production has remained halted since late August.

Brent added 40 cents to $73.32 a barrel, while US crude rose 39 cents to $70.11.

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