Asian stocks higher as investors await US inflation data

Asian stock markets are mostly higher as investors wait for an update on U.S. inflation that has been stronger than expected

Hong Kong Financial Markets (Copyright 2021 The Associated Press. All rights reserved.)

Asian stock markets were mostly higher Tuesday as investors waited for an update on U.S. inflation that has been stronger than expected.

Shanghai Tokyo and Sydney advanced, while Hong Kong retreated.

Wall Street s benchmark S&P 500 index closed higher, snapping a five-day losing streak.

Investors were watching for August inflation data. Headline inflation stands above 5% as consumer and business activity revives.

The price spike has prompted fears the Federal Reserve might feel pressure to roll back easy credit and other stimulus that is pushing up share prices. But Fed officials indicate they believe the surge is temporary and they will keep interest rates low until a recovery is established.

“The Fed has generally stuck to its transitory inflation view, but we think that risks may be tilted to the upside,” Eugene Leow of DBS said in a report. “In any case, excessively loose monetary policy may not increase output or employment but may worsen price pressures and distort market signals further.”

The Shanghai Composite Index gained less than 0.1% to 3,717.26 and Nikkei 225 in Tokyo rose 0.5% to 30,603.57. The Hang Seng in Hong Kong sank less than 0.1% to 25,800.87.

The Kospi in Seoul rose 1.1% to 3,162.42 while Sydney's S&P-ASX 200 advanced 0.1% to 7,434.20.

India's Sensex opened 0.4% higher at 58,408.22. New Zealand and Bangkok retreated while Singapore and Jakarta gained.

On Wall Street, the S&P 500 rose 0.2% to 4,468.73, boosted by bank, energy and communications stocks. The S&P 500 was coming off its biggest weekly drop in three months.

Trading on Wall Street is choppy as investors try to figure out how the economy will develop as the spread of the coronavirus's more contagious delta variant and measures to contain it hurt consumer spending and job growth.

U.S. retail sales data for August are due to be released Thursday.

In energy markets, benchmark U.S. crude gained 49 cents to $70.94 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 73 cents on Monday to $70.45. Brent crude, used to price international oils, advanced 44 cents to $73.95 per barrel in London. It added 59 cents the previous session to $73.51 a barrel.

The dollar rose to 110.07 yen from Monday's 110.02 yen. The euro advanced to $1.1814 from $1.1804.