Asian Shares Edge Higher as Traders Mull Catalysts – Asia Market Wrap

Asian stocks rose somewhat in range-bound trade, as investors sought new themes ahead of critical US inflation data coming Wednesday.

Benchmarks in Australia and Hong Kong gained, while those in Japan were buoyed by a lower yen, which benefits exporters. Their peers in South Korea and mainland China have dropped. US equities futures remained largely unchanged.

Treasury rates remained stable after the 10-year note surged to its highest level since November, just shy of the psychologically critical 4.5% mark. Traders’ belief in three quarter-point rate cuts from the Federal Reserve this year is swiftly fading, with markets currently favouring only two decreases.

The dollar remained unchanged, with the yen lingering around the carefully monitored 152 mark, which many say will prompt Japanese authorities to act.