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By Rae Wee
SINGAPORE, March 14 (Reuters) - Asian shares held near seven-month highs on Thursday though traded mostly sideways as investors awaited fresh catalysts that would provide further clarity on the global interest rate easing cycle.
Japan's Nikkei was headed for a fourth successive day of loss - its longest losing streak in about five months - as a potential policy pivot from the Bank of Japan (BOJ) at its meeting next week draws near.
MSCI's broadest index of Asia-Pacific shares outside Japan was last little changed and strayed not too far from a seven-month peak hit in the previous session, as traders shrugged off higher-than-expected U.S. inflation rate data.
Attention now turns to producer price data in the world's largest economy due later on Thursday, which feeds into the core personal consumption expenditures (PCE) price index.
The core PCE index is the U.S. Federal Reserve's preferred measure of inflation.
Retail sales figures for February are also due later in the day and comes ahead of the Fed's policy meeting next week, where focus will be on clues as to how soon policymakers could commence their rate-easing cycle.
"Since the FOMC (Federal Open Market Committee) last met, the U.S. inflation data have come in a bit stronger than expected, while the labour market generally has remained resilient," said economists at Wells Fargo in a client note.
"With payroll growth still solid and inflation proving to be a bit stickier recently, we suspect the FOMC will still be seeking greater confidence at the end of its meeting next week that inflation is headed back to 2% on a durable basis."
Still, the run of better-than-expected U.S. economic data has done little to alter the trajectory of the dollar, which was broadly weaker on the day as traders remained focused on the prospect of lower U.S. rates by the end of the year.
The euro hovered near its recent two-month high and last bought $1.0949, while the Australian and New Zealand dollars rose 0.12% and 0.26% respectively, buoyed by gains in commodity prices.
In China, the blue-chip CSI300 Index rose 0.46%, while the Shanghai Composite Index edged 0.25% higher, both reversing some of the loss of the previous session and shrugging off news that a Washington-based global trade association representing biotechnology companies is taking steps to "separate" from Chinese member Wuxi AppTec.
Hong Kong's Hang Seng Index fell 0.1%, dragged by technology stocks which slid 0.9%.
Country Garden Holdings was last up 1.7%, after tumbling nearly 5% in the previous session after the Chinese developer said funds for a 96 million yuan ($13.35 million) coupon payment due Tuesday were not fully in place.