TOKYO (AP) โ Asian stocks were mixed Tuesday in a subdued session after U.S. stock indexes were little changed ahead of the release of inflation data.
Japan's benchmark Nikkei 225 index shed early gains and was trading less than 0.1% higher at 38,194.38.
Australia's S&P/ASX 200 fell 0.2% to 7,731.40. South Korea's Kospi was little changed, inching up just under 0.1% to 2,726.76. Hong Kong's Hang Seng rose less than 0.1% to 19,115.78, while the Shanghai Composite lost almost 0.3% to 3,139.89.
Investors were watching inflation indicators to gauge the direction of economic growth, as well as the strength of the dollar.
"Today is an important day for both Germany and the United States as they are expected to reveal crucial economic data," said Luca Santos, market analyst at ACY Securities, referring to data on German consumer prices and production costs. in United States.
"Despite their different approaches, both indices offer insight into how inflation is shaping society," Santos said.
On Monday, the S&P 500 fell less than 0.1% to 5,221.42 after swinging between small gains and losses throughout the day. It remains within 0.6% of its record set in late March.
The Dow Jones Industrial Average fell 0.2% to 39,431.51 and the Nasdaq composite rose 0.3% to 16,338.24.
Biopharmaceutical company Incyte jumped 8.6% after saying it would buy back up to $2 billion of its shares. It is the latest major company to say it is returning cash to shareholders through such purchases, which increase the amount of earnings each remaining share is entitled to.
GameStop soared 74.4% in a swing reminiscent of your manic movements for three years, when hordes of investors with smaller pockets sent the stock price well above what many professional investors considered rational.
Stocks have rallied broadly this month after a difficult April on renewed hopes that inflation can slow enough. convince the Federal Reserve to reduce its main interest rate at the end of this year. A key test of those hopes will come Wednesday, when the U.S. government provides its latest monthly update on the inflation that households across the country are feeling.
Other reports this week include updates on the inflation wholesalers are seeing and sales at U.S. retailers. They could show whether fears about the worst-case scenario for the country, where persistently high inflation forms a devastating combination with stagnant inflation, are justified. economy.
Hopes have risen that the economy can avoid what is called โstagflationโ and hit the target where it cools enough to control inflation but remains strong enough to avoid a bad recession. Federal Reserve Chairman Jerome Powell also reassured financial markets when he recently said that the Federal Reserve remains closer to reducing rates have to increase them, even if inflation has remained above expectations so far this year.
A series of better-than-expected reports on US corporate earnings have helped support the market. S&P 500 companies are on track to report 5.4% growth in earnings per share in the first three months of the year compared to a year ago, according to FactSet. It would be the best growth in almost two years.
Earnings season is almost over and there are already reports from more than 90% of the companies in the S&P 500. But next week includes Walmart and several other big names. They could offer more details about how American households are faring.
Concerns have increased about Cracks in US consumer spending, which has been one of the pillars that has kept the economy out of a recession. Low-income households appear to be under particularly strong pressure amid still high inflation.
The Biden administration is expected to announce this week that increase tariffs on electric vehicles, semiconductors, solar equipment and medical supplies imported from China, according to people familiar with the plan. Tariffs on electric vehicles, in particular, could quadruple to 100%.
In energy trading, benchmark U.S. crude added 4 cents to $79.16 a barrel. Brent crude, the international standard, rose 3 cents to $83.39 a barrel.
In currency trading, the US dollar rose to 156.43 Japanese yen from 156.20 yen. The euro was worth $1.0790, down from $1.0793.
AP Business Writer Stan Choe contributed.
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