(Bloomberg) — Asian shares declined after a range-bound session on Wall Street, as caution grew ahead of Thursday’s closure of US equity markets and an important jobs report later this week.

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Stocks fell in Japan and Australia, while US contracts also slipped. Chinese equities on the mainland and in Hong Kong fluctuated, following data that showed deflationary pressures worsening in the world’s No. 2 economy. Meanwhile, an index of emerging-market stocks extended its losses from an early October peak to 10% — heading for a technical correction.

A regional gauge of semiconductor stocks was flat, in muted reaction to news that the Biden administration is planning an additional round of export restrictions on artificial intelligence chips. Nvidia Corp. dipped in post-market trading after the report.

The dollar was steady following Wednesday’s modest gains, while Treasuries edged higher after a solid $22 billion sale eased concerns about a recent global debt selloff.

A gloomy outlook for China’s economy is adding pressure on regional markets as the latest inflation readings suggest that Beijing’s stimulus efforts have so far failed to revive demand. Next up is Friday’s US employment report, which may shed more light on the Federal Reserve’s policy outlook.

“There was little deviation in China’s inflation data from what markets were expecting and hence, market reaction to it has been more limited thus far,” said Jun Rong Yeap, market strategist at IG Asia. “China’s consumer inflation remains subdued, which once again leaves deflation talk on the table and keeps market focusing on any upcoming consumption-driven stimulus.”

Meanwhile, Beijing expanded its support for the beleaguered yuan with a plan to issue a record amount of bills in the Hong Kong market to add demand for the currency overseas.

Elsewhere, the Australian dollar declined as weaker-than-expected retail sales data bolstered the case for an interest rate cut next month.

The yen strengthened below 158 per dollar. Japanese workers’ base salaries grew the most in 32 years, offering potential support for the central bank to raise rates this month. Meanwhile, the country’s auction of 30-year government bonds Thursday met solid demand due to higher yields.

In commodities, oil extended Wednesday’s decline. Gold slipped.

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