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HomeLatestAsian Stocks Tread Water Ahead of Tech Earnings and Rate Cues
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Asian Stocks Tread Water Ahead of Tech Earnings and Rate Cues

On Tuesday, most Asian stocks remained within a flat-to-low range as investors awaited earnings reports from some of the world’s largest companies and sought more cues on U.S. interest rates.

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While regional markets drew some positive momentum from a strong overnight close on Wall Street, where U.S. stock indexes rebounded from two weeks of losses, the enthusiasm seemed tempered. U.S. stock index futures dipped slightly during Asian trade, signaling a cautious sentiment among investors.

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Chinese stocks were the day’s underperformers, with the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes slipping by 0.6% and 0.5%, respectively. The recent rebound in Chinese markets appeared to be losing steam, with investors eager for more assurances of stimulus from Beijing. Despite bouncing from five-year lows hit in late January, Chinese stocks showed slowing momentum amid signs of economic growth faltering again in March and limited signals from Beijing on further stimulus measures.

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In contrast, Hong Kong’s Hang Seng index found support from strength in technology stocks, rising by 1.1%. Videogame giant Tencent Holdings Ltd (HK:0700) led the gains with a 3% jump after the release of a long-awaited videogame earlier in the week. JD (NASDAQ:JD).com (HK:9618) also surged over 4%, though the reason for the bounce was not immediately clear.

Across broader Asian markets, trading remained subdued, with indexes still recovering from recent steep losses driven by concerns over higher U.S. rates and weak risk appetite. Japan’s Nikkei 225 and the broader TOPIX remained flat despite positive purchasing managers index data for April. Australia’s ASX 200, however, rose by 0.4%, buoyed by strong PMI readings for April indicating the manufacturing sector’s proximity to expansion territory.

Looking ahead, investors are awaiting earnings reports from major U.S. companies, including Tesla Inc (NASDAQ:TSLA) later on Tuesday, followed by Meta Platforms Inc (NASDAQ:META) on Wednesday, and Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc (NASDAQ:GOOGL) on Thursday. Additionally, focus remains on the PCE price index data due on Friday, which is expected to influence the Federal Reserve’s stance on interest rates as its preferred inflation gauge.

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