Asian shares mixed, eyes on inflation data

Asian shares were mixed on Tuesday amid speculation of an European Central Bank (ECB) rate cut, as expectations of rate cuts increased risk appetite, Reuters reported.

ECB officials signalled room for rate cuts as inflation slows, solidifying expectations for a reduction on June 6. Markets are now pricing in two cuts by October.

Wall Street stock futures rose slightly, with S&P 500 futures up 0.1 per cent and Nasdaq futures gaining 0.2 per cent before the US market reopened.

MSCI’s Asia-Pacific index rose 0.4 per cent, driven by a 0.7 per cent gain in Hong Kong’s Hang Seng. Japan’s Nikkei slipped 0.3 per cent, reversing some of its previous day’s 0.7 per cent advance.

Chinese blue chips shed 0.1 per cent after a one per cent rise on Monday, as the tech sector surged on Beijing’s commitment to invest in semiconductors.

This week’s key events include Friday’s release of core PCE data and euro zone inflation figures, which will impact trading. Forecasts predict a 0.3 per cent rise in core PCE for April, maintaining the annual rate at 2.8 per cent with potential downside risks.

In forex, the dollar weakened for a third day as traders positioned for the PCE data. The Japanese yen held steady around 156.80 per dollar, near the key 157 level.

However, it weakened against high-yielding currencies, with the New Zealand dollar reaching a 17-year high of 96.56 yen.

Oil prices remained mostly flat, with Brent futures inching up 0.1 per cent to $83.19 a barrel.

Gold prices extended their gains for a third day, rising 0.1 per cent to $2,354.23 per ounce.