Asian stocks edge ahead ahead of inflation data: Markets mixed

(Bloomberg) — Asian stocks traded in a tight range on Tuesday and the dollar fell ahead of a series of inflation prints that are expected to influence the direction of global monetary policy.

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South Korean and Taiwanese stocks rose. US and UK markets closed on Monday and European shares rose in weak trading. S&P 500 futures rose in early hours in Asia.

In commodities, gold stabilized as traders awaited US inflation data. Oil advanced as the focus shifted to an OPEC+ supply meeting on Sunday and U.S. demand at the start of the summer season.

Traders will this week study new inflation data from Australia to Japan, the eurozone and the US. Bank of Japan Governor Kazuo Ueda and his deputy have indicated that there is scope to gradually raise interest rates now that the country has moved away from a 0% inflation norm. Japan’s producer prices in April surpassed estimates.

The dollar fell against all Group of 10 peers and the 10-year Treasury yield fell.

The Federal Reserve’s favored measure of underlying inflation is expected to show modest easing when it arrives on Friday. Chairman Jerome Powell emphasized the need for more evidence that inflation is on track for the 2% target before easing policy. John Williams, Lisa Cook, Neel Kashkari and Lorie Logan are among the US central bankers speaking this week.

Chinese property stocks traded higher after financial hub Shanghai lowered down payment ratios and mortgage minimums, as China’s biggest cities followed through with central government aid to the property sector.

With US and UK markets closed on Monday, European stocks gained prominence, with carmakers and utilities leading a modest advance in the Stoxx Europe 600 index. Trading volume was less than half of 20-day average for that time of day.

The ECB should not rule out lowering borrowing costs at its June and July meetings, Governing Council member François Villeroy de Galhau said, reacting to fellow monetary officials who are uncomfortable with the idea of ​​consecutive cuts. Chief economist Philip Lane told the Financial Times that the central bank will have to maintain restrictive policy until 2024, even with the prospect of an interest rate cut next month.

While an ECB rate cut in June was widely telegraphed, subsequent measures are less clear given uncertainty over wage growth and factors such as fighting in the Middle East. This week’s data may show that overall inflation in the eurozone rose in May.

The story continues

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Some important events this week:

• The IMF holds discussions with Ukrainian authorities to review economic policies as the country seeks to unlock the next tranche of $2.2 billion in aid, Monday

• Cleveland Fed President Loretta Mester speaks at BOJ event in Tokyo; Minneapolis Fed President Neel Kashkari and Governing Council Member Klaas Knot speak at the Barclays-CEPR International Monetary Policy Forum, Tuesday

• South African elections, the most significant since the end of apartheid, Wednesday

• Fed releases Beige Book economic survey, Wednesday

• South African Rate Decision, US Initial Jobless Claims, GDP, Wholesale Inventories, Thursday

• New York Fed President John Williams speaks at the New York Economic Club, Thursday

• GDP data published for Canada, Eurozone, Turkey, Friday

• Japan unemployment, Tokyo CPI, industrial production, retail sales, Friday

Some of the main movements in the markets:

Actions

• S&P 500 futures were up 0.1% at 10:36 a.m. Tokyo time

• Nikkei 225 (OSE) futures fell 0.3%

• Japan’s Topix has changed little

• Australia’s S&P/ASX 200 was little changed

• Hong Kong’s Hang Seng rose 0.2%

• The Shanghai Composite fell 0.2%

• Euro Stoxx 50 futures were little changed

Coins

• The Bloomberg Dollar Spot index was little changed

• The euro was little changed at $1.0869

• The Japanese yen was little changed at 156.80 per dollar

• The offshore yuan remained unchanged at 7.2589 per dollar

Cryptocurrencies

• Bitcoin fell 0.2% to $69,421.37

• Ether little changed at $3,887.05

Titles

goods

• West Texas Intermediate crude rose 1.4% to $78.78 a barrel

• Spot gold rose 0.1% to $2,354.22 an ounce

This story was produced with help from Bloomberg Automation.

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