Mumbai, 26 Jun (Commoditiescontrol): Asian stocks experienced mixed performance in early Wednesday trading as markets awaited a crucial U.S. inflation reading and monitored the yen’s proximity to the 160 per dollar level, raising anticipation of potential intervention by Japanese authorities.The MSCI's broadest index of Asia-Pacific shares outside Japan remained largely unchanged at 566.55 amid choppy trading, moving away from the two-year high of 573.38 reached last week. The index is up 3.5% in June, marking its fifth consecutive month of gains.
Japan's Nikkei and Taiwan stocks saw gains, driven by chipmakers and tracking a rally in the tech-heavy Nasdaq on Tuesday, where Nvidia surged over 6% after a three-session decline that erased about $430 billion from its market value.
In contrast, Chinese stocks edged lower, with the blue-chip CSI300 Index and the Shanghai Composite Index both down 0.2%, heading for a 4% decline for the month. Hong Kong's Hang Seng index also dropped 0.16%.
Risk sentiment remained subdued due to hawkish comments from Federal Reserve officials, which dampened near-term U.S. rate cut expectations and bolstered the dollar. Federal Reserve Governor Lisa Cook indicated a rate cut would be considered if economic performance meets expectations, though she did not specify a timeline. Governor Michelle Bowman reiterated the view that holding the policy rate steady for some time would likely suffice to control inflation.
Market participants are keenly awaiting Friday's release of the U.S. personal consumption expenditures (PCE) price index, the Fed's preferred measure of inflation. Economists polled by Reuters expect annual growth to ease to 2.6% in May.
The dollar index, which measures the U.S. currency against six peers, was steady at 105.64. The euro traded at $1.0715.
The Australian dollar rose after data showed consumer price inflation accelerating to a six-month high in May, with markets narrowing odds on a rate hike as early as August. The Aussie was last up 0.39% at $0.6674.
The yen was at 159.79 per dollar, trading in tight ranges as it approached the critical 160 level. The yen previously touched a 34-year low of 160.245 per dollar on April 29, prompting substantial intervention by Japanese authorities.
Oil prices were relatively stable in Asian trade, with Brent crude futures flat at $85.02 a barrel and U.S. West Texas Intermediate crude futures at $80.90 per barrel.
Gold prices eased to $2,318 per ounce but remain up 12% this year, having reached a record high of $2,449.89 last month.
As traders brace for the U.S. inflation data, market movements remain cautious, particularly in light of the yen's potential intervention point and the ongoing impact of Federal Reserve policies.
(By Commoditiescontrol Bureau: 09820130172)
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