Asian Stocks Edge Up Before Key Data, Oil Falls: Markets Wrap

Asian shares posted a modest gain at the open as investors stayed cautious ahead of key economic data this week and a looming deadline for the potential extension of US tariffs on Chinese exports.

Stocks rose in Australia while South Korea fluctuated. Oil fell 0.7%, the seventh decline in eight days, ahead of US-Russia talks. There will be no cash trading in Treasuries during Asian hours due to a holiday in Japan. Gold futures in New York steadied as traders awaited clarification from the White House over its tariff policy. Contracts for the S&P 500 edged up 0.1%.

Asian lithium stocks rose after Contemporary Amperex Technology Co. Ltd. suspended production at a major mine in China’s Jiangxi province for at least three months, a move that may ease oversupply concerns.

The modest moves came as traders awaited critical US economic releases that could shape interest-rate expectations, while a looming tariff deadline may influence trading sentiment. A key focus will be the US inflation report, expected to offer further insight into the Federal Reserve’s interest-rate path amid concerns the economy is teetering on the edge of stagflation.

“Stagflation creates a dilemma for the Federal Reserve as it challenges their dual mandate of maximum employment and price stability,” Joe Unwin, head of portfolio management at Apostle Funds Management, wrote in a note. “This could lead to a scenario where interest rates remain elevated despite weaker economic growth, which would be bearish for almost all traditional asset classes.”

Oil fell after its biggest weekly drop since end-June before a meeting between the US and Russian leaders on Friday, which is raising the prospect of an end to the war in Ukraine and more supply.

Brent traded near $66 a barrel, after sliding 4.4% last week, while West Texas Intermediate was above $63. 

Technology stocks will be in focus after Nvidia Corp. and Advanced Micro Devices Inc. agreed to pay 15% of their revenues from chip sales to China to the US government as part of a deal with the Trump administration to secure export licenses.

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Chinese retail sales and industrial production data due later this week will be parsed after consumer and producer price data at the weekend indicated demand remains fragile. Traders are also waiting for confirmation that the Aug. 12 deadline for talks on US duties on Chinese imports will be extended. 

“The market has fully subscribed to the high probability of the tariff truce being rolled over for another 90 days,” said Chris Weston, head of research at Pepperstone Group in Melbourne. 

Elsewhere, Australia’s central bank is expected to ease policy on Tuesday as inflationary pressures ebb. Still, Governor Michele Bullock is expected to stick with her cautious stance on the monetary policy outlook. 

Some of the main moves in markets: 

Stocks

• S&P 500 futures rose 0.1% as of 9:11 a.m. Tokyo time

• Australia’s S&P/ASX 200 rose 0.2%

• Euro Stoxx 50 futures rose 0.4%

Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.1646

• The Japanese yen was little changed at 147.64 per dollar

• The offshore yuan was little changed at 7.1892 per dollar

Cryptocurrencies

• Bitcoin rose 0.7% to $119,238.64

• Ether rose 0.7% to $4,246.25

Bonds

• Australia’s 10-year yield advanced two basis points to 4.26%

Commodities

• West Texas Intermediate crude fell 0.8% to $63.38 a barrel

• Spot gold fell 0.3% to $3,387.91 an ounce

This story was produced with the assistance of Bloomberg Automation.