Asian stocks struggled to find a firm footing amid a lack of domestic catalysts, with the S&P 500 hitting a fresh record ahead of results from chip giant Nvidia.
Japanese shares fell after the country reported a trade deficit, while Australian shares rose. Stocks in Hong Kong and mainland China were lower at the open. U.S. futures were little changed in early Asian trading, after the S&P 500 hit its 24th record this year.
MSCI Asia Pacific Index fell for a second day after a seven-session winning streak. Investors are waiting to see if AI leader Nvidia can meet sky-high expectations for the technology. Investors are also keeping an eye on central bank meetings for clues on the direction of global interest rates.
diminishing optimism
“Asian markets are showing diminishing optimism as investors await the next catalyst-related market direction while digesting mixed domestic data,” said Hebei Chen, analyst at IG Markets. “Japanese market is down today amid lackluster trading data.”
The Reserve Bank of New Zealand and Bank Indonesia are set to keep interest rates steady on Wednesday, while the minutes of the Federal Reserve’s latest policy meeting are also due later in the day. South Korea’s central bank is expected to keep rates unchanged at its meeting on Thursday.
Treasuries steadied after global bonds surged in the latest sign that advanced nations are finally getting a handle on inflation, with Federal Reserve Governor Christopher Waller saying the latest report on U.S. price pressures was a reassuring sign. Australian bond yields were flat early in the session. The Bloomberg Dollar Index was little changed.
Trading in Asia is likely to be quieter with the Singapore market closed for a holiday. Gold, silver and copper held near recent highs, while oil fell after an industry report showed a jump in inventories.
