Asian shares slip amid Fed’s mixed messages

Asian equities faced challenges on Tuesday due to conflicting messages from US monetary policymakers and uncertainty surrounding the Chinese yuan, as reported by Reuters.

Traders were cautious ahead of the release of US inflation data on Friday.

The dollar was under pressure against the yen amid concerns of potential intervention by Japan, but gained against the yuan on speculation of China accepting a weaker currency.

The Asia-Pacific shares index rose slightly by 0.3 per cent, driven by gains in South Korean chipmakers.

Market sentiment in China and Hong Kong remained fragile following the yuan’s recent decline.

Investors in Hong Kong were monitoring support for the property market and potential policy shifts in response to the currency movements.

Japan’s Nikkei and the yen were stable, while S&P 500 futures edged 0.1 per cent higher. Federal Reserve officials’ varying views on interest rate cuts added uncertainty to the market outlook ahead of the upcoming US inflation data release.

Chair Jerome Powell’s stance on easing measures could influence future policy decisions.