The Asian stock market remained cautious on Tuesday as investors awaited key U.S. inflation data, with Japanese stocks seeing extended losses amid signs that the Bank of Japan may raise interest rates soon.
The Nikkei 225 and TOPIX indexes in Japan fell 1.3% and 1.6%, respectively, hitting over two-week lows and trading well below record highs reached last week. The market reacted to mildly stronger-than-expected inflation data, fueling speculation that the BOJ may end its ultra-dovish policy in the near future.
Meanwhile, Chinese stocks hovered near four-month highs, with the indexes falling slightly on Tuesday but remaining within sight of recent highs. Gains in technology stocks helped boost Hong Kong’s index by 0.6%, although overall gains in Chinese markets have slowed amid doubts over the country’s economic recovery.
Broader Asian markets stuck to a tight range, with Australia’s rising 0.2% and South Korea’s adding 0.2%. Investors were on edge before key U.S. CPI data, expected to influence the Federal Reserve’s plans for interest rate cuts in 2024.
Overall, uncertainty over central bank policies and economic recovery in China kept Asian markets muted, with investors eagerly awaiting further cues on stimulus measures and interest rate decisions.
