Asian Stocks Mixed Before U.S. Inflation; Yen Down

Stocks put in a mixed session in Asia Tuesday ahead of a key U.S. inflation report that may affect the outlook for Federal Reserve policy tightening. The yen retreated as immediate concerns about a political scandal in Japan subsided.

Japanese stocks fluctuated before closing higher, while Hong Kong and Chinese shares drifted. Australian equities slid, weighed down by banks and miners. 

Futures on the S&P 500 Index were little changed. The yen gave up gains spurred yesterday by questions about the tenure of Japanese Finance Minister Taro Aso. The U.S. 10-year note yield held at 2.88 percent after a Treasury auction was broadly in line with expectations

Given the Abe administration’s strong support for a weaker yen since taking office in December 2012, the potential damage of a scandal surrounding a controversial sale of land had caught traders’ attention on Monday.

But with the finance chief rebuffing the idea of resignation, and no major ruling party members pushing for such a move, the affair offered no new fodder for investors Tuesday.


Focus now turns to American inflation and retail sales data, followed by reports on Chinese industrial production, retail sales and fixed-asset investment/ The U.S. inflation reading is the last major piece of data ahead of the Federal Reserve’s policy meeting next week.

U.S. politics also remain an issue, after President Donald Trump issued an executive order blocking Broadcom Ltd. from acquiring Qualcomm Inc., scuttling a $117 billion hostile takeover that had been subject of scrutiny over the deal’s threat to U.S. national security.

Japan’s Topix index gained 0.6 percent at the close in Tokyo.

South Korea’s Kospi index was up 0.4 percent.

Australia’s S&P/ASX 200 Index declined 0.4 percent.

Hong Kong’s Hang Seng Index fell 0.2 percent and the Shanghai Composite Index lost 0.5 percent.

S&P 500 Index futures were up about 0.1 percent. The underlying measure lost 0.1 percent Monday.