MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.13 per cent at 620.05 on Tuesday, just below the two-and-a-half-year high of 627.66 reached on Monday
Asian stocks eased near two-and-half-year highs on Tuesday and the U.S. dollar firmed following hawkish comments from Fed Chair Jerome Powell that lowered bets of big interest rate cuts, while Middle East tension kept risk sentiment in check.
Oil prices were steady and gold traded just below a record high hit last week as investors awaited U.S. labour data for more clarity on the pace of U.S. rate cuts.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.13 per cent at 620.05 on Tuesday, just below the two-and-a-half-year high of 627.66 reached on Monday. The index is 17 per cent higher so far in the year.
Japan’s Nikkei gained 1.5 per cent in early trading after skidding 4.8 per cent on Monday as investors contended with perceived monetary policy hawk Shigeru Ishiba winning a contest to become the country’s prime minister.
Japanese shares were strengthened by a weaker yen which stayed at 144.09 per dollar in early trading.
With mainland China’s financial markets closed for the rest of the week, the blistering rally that has buoyed Asian markets in the past week is set to take a breather. Hong Kong’s Hang Seng is also shut on Tuesday.
A slew of economic stimulus measures has led to beaten-down Chinese stocks surging, with the blue chip CSI300 gaining 25 per cent since the beginning of last week as global investors prepare to stake bets on China again.
I think we are in for some choppy trade until U.S. data comes to flow in, said Matt Simpson, senior market analyst at City Index, noting volume is thin with Chinese markets shut.
