FX.co ★ Asian Shares Mixed In Muted Trading

In Tuesday's subdued trading, Asian stocks closed with mixed outcomes as investors awaited the release of U.S. inflation data which could impact rate perspectives. The dollar held strong while gold saw a slight rise and oil fell a notch, pending further clarity on OPEC+'s production policy.

Chinese markets were flat, following a volatile session in anticipation of an announcement from the Biden administration concerning increased tariffs on Chinese electric vehicles, semiconductors, batteries, solar cells, steel, and aluminum. The Shanghai Composite and Hong Kong's Hang Seng indexes experienced minor dips, while the Japanese market saw slight gains led by the banking and mining sectors. Thanks to a weaker yen, exporters also largely finished on an up note.

Japan's producer price index revealed a 0.9% year-on-year rise in April, according to a report from the Bank of Japan. South Korean stocks saw a small increase, as investors anticipated U.S. consumer price and producer price inflation data as well as a speech from Fed Chair Jerome Powell.

However, financial stocks in Korea, such as KB Financial Group and Hana Financial Group, performed poorly, experiencing declines of 2.5% and 3.5% respectively. It was also revealed that Korea's terms of trade had experienced a five-month increase, owing to a rise in export prices and a fall in import prices.

Australian markets experienced a slight dip following unremarkable Wall Street overnight activity. The main S&P ASX 200 dipped 0.30% to 7,726.80, as did the wider All Ordinaries index.

Across the Tasman, New Zealand's benchmark S&P NZX-50 index suffered a small dip following the contraction of electronic retail sales in April.

U.S. stocks saw mixed results ahead of key inflation reports and a forthcoming speech from Fed Chair Jerome Powell. A New York Federal Reserve survey revealed that consumers were expecting a year of increased inflation and decreased income. Meanwhile, Federal Reserve Vice-chair Phillip Jefferson advised maintaining current rates until inflation dropped back to the 2% target.

While the Dow experienced a 0.2% dip, breaking an eight-day winning streak, the S&P 500 slightly fell, and the tech-heavy Nasdaq Composite index rose a fraction.