Asian Markets Mixed, Oil Prices Climb as Investors Await US Inflation Data
Asian shares were mixed on Tuesday after a US market holiday, with oil prices climbing. Investors are awaiting key US inflation data due later this week.
Asian stock markets and US futures presented a mixed picture on Tuesday, with trading volumes thin following the Labor Day holiday closure on Wall Street. Investor sentiment was cautious as they looked ahead to crucial US inflation data scheduled for release later in the week.
In Japan, the Nikkei 225 index surrendered early gains to close 0.3% lower at 66,170.34. The dip came even as the government revised its economic growth figures for the April-June quarter upwards to an annualized pace of 1.4%, from a previous estimate of 1.1%. The revision was attributed to stronger business investment than initially reported, although overall investment in the quarter still contracted by 0.9%.
Commenting on the data, Norihiro Yamaguchi of Oxford Economics noted that the boost to consumption from earlier policy measures is fading. He added that supply-side driven inflation is expected to accelerate as firms pass on increased costs, which will likely erode consumers' purchasing power.
Elsewhere in the region, South Korea's Kospi index led gains, climbing 1% to 7,060.79, buoyed by sustained buying in computer chipmakers. Samsung Electronics saw its shares rise 2.9%, while memory chip maker SK Hynix jumped 5.3%.
In China, the Shanghai Composite index edged 0.1% higher to 3,938.33, while Hong Kong's Hang Seng index lost 0.4% to 25,312.10. Official data showed Chinese exports surged 25% year-on-year in August, driven by strong demand for autos and high-tech items. Australia's S&P/ASX 200 index declined 0.8% to 8,937.90.
In currency markets, the US dollar slipped to 153.47 Japanese yen from 154.34 yen. The yen has strengthened against the dollar in recent days on expectations that US and Japanese authorities might intervene to support the currency. Last week, the dollar had briefly traded near the 160 yen level.
Oil prices crept higher in early trading. Brent crude, the international benchmark, added 71 cents to $97.74 a barrel, while US benchmark crude surged 1.8% to $93.13 a barrel, with tensions simmering in the ongoing conflict involving the US and Iran.
On Wall Street, futures pointed to a mixed open after markets were closed on Monday. The S&P 500 had lost 0.4% on Friday, while the Dow Jones Industrial Average fell 0.5% and the Nasdaq composite gave back 0.3%.
Investors are now bracing for key inflation updates from the US. The Producer Price Index (PPI) for August is due on Thursday, which measures inflation at the wholesale level. This will be followed on Friday by the more closely watched Consumer Price Index (CPI), which provides detailed information on price changes for consumer goods and services.