Investing.com — Most Asian stocks traded in a narrow range on Tuesday as uncertainty over interest rates, especially ahead of a speech by Federal Reserve Chairman Jerome Powell, kept investors on edge.
Regional markets took a cue from a slightly positive close on Wall Street, with the technology sector the only one to post substantial gains. U.S. stock index futures fell in Asian trade ahead of a series of interest rate signals this week.
The European Central Bank will speak at an event on Tuesday, with data due on Wednesday. Key labor market data is also due this week, with the latter due on Friday.
Chinese stocks fall, Hong Kong rises in recovery trade
Chinese indices rose slightly on Tuesday after a modestly positive start to July. But they also suffered sharp losses in June as sentiment about China’s economic recovery faded.
Hong Kong’s index rose in post-holiday recovery trade on Monday, rising 1.5% as locally-heavy technology stocks tracked gains from their U.S. peers.
Some positive data on the private purchasing managers’ index helped support sentiment towards China this week, as did data showing an improvement in home sales.
But official PMI data over the weekend showed China’s manufacturing sector shrank for the second straight month.
Australian shares fall after RBA minutes
The Aussie fell 0.4% after the site showed policymakers were considering an interest rate hike amid sticky inflation.
Australian inflation has beaten expectations for three months in a row and has remained well above the RBA’s target range. If this trend continues, it could prompt a 25 basis point rate hike in August, UBS analysts say.
Broader Asian markets were mostly mixed. The Japanese market rose 0.3%, while the advanced 0.8%. The TOPIX also settled at a more than 30-year high, amid persistent bets that the weakness of the Japanese economy will prevent the Bank of Japan from tightening policy sharply.
South Korea, , fell 0.6% even as data showed South Korean inflation unexpectedly eased in June.
Indian stocks hit all-time highs
The Indian index opened slightly lower, with the index set to take profit after hitting a series of all-time highs in June.
Optimism about the Indian economy, with the ruling BJP party heading for a third term in power, saw the Nifty and the rally to new highs in June.
The Nifty is up 11% so far in 2024 and analysts expect further gains as the Indian economy holds up.
