Investing.com– Most Asian stocks moved in a tight range on Tuesday as caution persisted before a slew of key economic readings this week, while Japanese markets rose sharply after a long weekend.
Regional markets took middling cues from a flat overnight close on Wall Street, as anticipation of closely-watched U.S. inflation data this week kept investors to the sidelines.
U.S. stock index futures were flat in Asian trade. Consumer price index inflation data from the U.S. is the biggest point of focus for markets this week.
Nikkei, TOPIX surge in catch-up trade, GDP on tap
Japan’s Nikkei 225 and TOPIX indexes rose 2.3% and 1.8%, respectively, extending a rebound from late last week.
Both indexes had plummeted into bear market territory last week following hawkish signals from the Bank of Japan. But less hawkish comments from some BOJ officials and a softer yen helped Japanese stocks recoup a bulk of their losses.
Some positive earnings also aided sentiment, especially in the chipmaking sector.
Focus this week is squarely on gross domestic product data for the second quarter, where traders will be watching for any signs of improvement in growth.
The Japanese economy shrank substantially more than expected in the first quarter, denting sentiment towards the country. But any improvement in growth also presents the BOJ with more headroom to hike interest rates further this year.
Chinese stocks lag with earnings, economic cues on tap
Underperformance in Chinese markets persisted, with the Shanghai Shenzhen CSI 300 and Shanghai Composite moving in a flat-to-low range on Tuesday. Hong Kong’s Hang Seng index also tread water.
