Asian Shares Decline As Investors Await US Inflation Data

(RTTNews) - Asian stocks fell broadly o Tuesday as investors waited for looming U.S. inflation figures and earnings from AI darling Nvidia.

Increased tensions in the Middle East and the Canadian government's action to impose a large tax on Chinese-made electric vehicles (EVs) also checked risk sentiment.

The dollar strengthened and Treasuries held steady ahead of PCE inflation data due later in the week that might show that U.S. consumer price increases continued to run cool in July.

Oil and gold prices were little changed in Asian trading despite Russia launching a fresh wave of deadly strikes on Ukraine.

Chinese shares ended lower as an escalation of trade tensions between Western countries and China offset data showing China's industrial profits grew faster in July. The benchmark Shanghai Composite index slid 0.24 percent to 2,848.73.

Japanese markets eked out modest gains as a softer yen helped offset losses in the tech sector.

The Nikkei average rose 0.47 percent to 38,288.62 while the broader Topix index settled 0.73 percent higher at 2,680.80.

Canon, Honda Motor, Toyota, Nissan and Sony climbed 1-2 percent as the yen declined from a three-week high.

Chip-related shares fell, with Advantest and Tokyo Electron losing 1.6 percent and 0.9 percent, respectively.

Seoul stocks declined as a result of a weakening won. The Kospi average dipped 0.32 percent to 2,689.25. LG Electronics dropped 0.6 percent on reports it is considering an initial public offering for its India business.

Australian markets ended lower, with banks and tech stocks leading losses ahead of the release of domestic inflation print due on Wednesday.

The benchmark S&P/ASX 200 slipped 0.16 percent to 8,071.20 while the broader All Ordinaries index eased 0.17 percent to close at 8,297.10.

BHP Group rose 1.3 percent after the world's biggest miner reported full-year profit edged up 2 percent in line with analyst forecasts.

Across the Tasman, New Zealand's benchmark S&P/NZX 50 index fell 1.10 percent to 12,451.11.

U.S. stocks ended mixed overnight as chip shares declined ahead of Nvidia's (NVDA) eagerly awaited earnings later in the week.

Treasury yields edged up slightly as oil prices jumped on supply concerns and data showed new orders for long-lasting goods in the U.S. rose the most in four years in July.

The Dow inched up 0.2 percent to reach a new record closing high, while the tech-heavy Nasdaq Composite shed 0.9 percent and the S&P 500 dipped 0.3 percent.