Asian shares were nervous on Thursday, with the dollar holding on to overnight gains ahead of a major test of US consumer inflation, while investor panic over the possible collapse of a major cryptocurrency exchange tumbled.

With no final outcome to the US midterm elections, investors turned to inflation data later in the day, a Reuters poll showed, which could show both monthly and annual core readings for October falling to 0.5% and 6.5% respectively.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6% in early trade, dragged down by sharp losses in China’s blue-chip shares and Hong Kong’s Hang Seng. Japan’s Nikkei fell 1%.

China is once again battling a surge in the coronavirus, with thousands of cases reported in the southern metropolis of Guangzhou. Despite the lifting of the lockdown, Apple supplier Foxconn plans to update its fourth-quarter outlook on Thursday after imposing strict COVID restrictions at its major factories in China. Elsewhere, the focus remains on inflation.

Futures markets are now showing that investors see the US federal funds rate target peaking at around 5.1% in June, with the odds of a 50 or 75 basis point hike leaning toward a 0.5 basis point hike next month.

Stocks on Wall Street ended lower overnight as Republican gains in the midterm elections appeared to be more modest than some had expected. Republicans are still in a good position to win control of the House, but the crucial race is too close.

In the cryptocurrency world, Bitcoin recovered some of its losses early on Thursday after falling to its lowest level since late 2020 for two consecutive sessions.

Binance, the world’s largest cryptocurrency exchange, said late Wednesday it had decided not to acquire smaller rival FTX, which has been grappling with a severe liquidity crunch and facing bankruptcy without more capital.

The US dollar held on to most of its overnight gains against a basket of currencies on Thursday. The Sterling rose 0.2% against the dollar after falling 1.6% in the previous session. US Treasury yields were lower on Thursday.

The yield on the benchmark 10-year Treasury note fell 6 basis points to 4.0866%, while the yield on the two-year note edged down 5 basis points to 4.5732%.

In commodities, oil prices extended their pullback on Thursday after falling about 3% in the previous session on concerns about Chinese demand and a build in U.S. crude inventories.

US crude futures were down 0.3% at $85.59 a barrel, while Brent crude futures were down a similar amount to $92.37. Gold was little changed, with the spot price at $1,705.92 an ounce.