Asian stocks rise slightly, buyers wary as markets wait for US inflation test

An investor looks at an electronic board displaying stock information at a brokerage in Beijing, China August 25, 2015. China’s major stock indexes fell more than 6 percent in early trading on Tuesday after a disastrous Monday which saw Chinese stock markets suffer their biggest losses since the global financial crisis, destabilizing financial markets around the world. REUTERS/Kim Kyung-Hoon

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HONG KONG, Aug 9 (Reuters) – Asian stocks posted modest gains on Tuesday as buyers were held back by lingering global cost pressures, with investors focusing this week on U.S. inflation data and the prospect of further aggressive rate hikes from the Federal Reserve.

Surprisingly strong US jobs data on Friday raised the stakes for the July US consumer price report due on Wednesday, particularly for the Fed’s policy outlook.

“US equities struggled to hold on to gains as the focus shifts from a robust US labor market to US CPI data released later this week,” ANZ analysts said in a note. .

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“The priority of reducing inflation to support expanding domestic demand and sustainable job growth will resonate loud and clear from the Jackson Hole symposium on August 25-27.”

European markets were forecast for a lower open with pan-regional Euro Stoxx 50 futures down 0.16%, German DAX futures down 0.16% and FTSE futures down 0. .12%. US equity futures, the S&P 500 e-minis, rose 0.22%.

“Movements in major financial markets continue to reflect fears of a global recession. European stock futures fell.

MSCI’s broadest index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) rose 0.3%. The index is up 0.5% so far this month.

The Japanese Nikkei (.N225) slid 0.95%, hit by weak heavyweight quarterly earnings and lower expectations for the video game market, while Australian stocks (.AXJO) rose 0. .06%.

Chinese equities edged higher, led by energy and renewables stocks. But gains were capped as COVID-19 outbreaks and tensions with the United States, following US House Speaker Nancy Pelosi’s visit to Taiwan last week, weighed on sentiment. . Read more

China’s blue-chip CSI300 index (.CSI300) rose 0.16%. Hong Kong’s Hang Seng Index (.HIS) rose 0.4%.

Wall Street closed virtually flat on Monday after hit jobs data last week bolstered expectations that the Federal Reserve would clamp down on inflation, while a revenue warning from chipmaker Nvidia raised expectations. reminded investors of the slowdown in the US economy.

Investors are now awaiting consumer price data on Wednesday to gauge whether the Fed could ease its fight against inflation a bit and provide a better foundation for the economy to grow. Read more

There have been encouraging signs for the Fed on the price front, with a New York Fed survey on Monday showing consumer inflation expectations fell sharply in July. Read more

The Dow Jones Industrial Average (.DJI) rose 0.09% while the S&P 500 (.SPX) lost 0.12% and the Nasdaq Composite (.IXIC) fell 0.1%.

The bonds also got a safe-haven bid amid unease over Beijing’s slashing of Taiwan amid days of Chinese military exercises around the island.

The yield on the benchmark 10-year Treasuries rose to 2.7608% from its US close of 2.763% on Monday. The two-year yield, which rises on traders’ expectations of a hike in the fed funds rate, touched 3.2056% from a US close of 3.216%.

The dollar index, which tracks the greenback against a basket of currencies from other major trading partners, rose to 106.35.

Oil prices continued their recent decline after suffering the worst week since April on concerns about stalled global demand as central banks continue to tighten. WHERE

US crude fell 0.11% to $90.66 a barrel. Brent fell to $96.51 a barrel.

The rising dollar was a setback for gold, although it managed to rebound from lows hit on Friday and was trading at $1,785.67 an ounce.

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Editing by Shri Navaratnam

Our standards: The Thomson Reuters Trust Principles.

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