Asian shares fall ahead of economic data; Japan Grows in Catch-Up Trade By Investing.com

Investing.com– Most Asian stocks moved in a tight range on Tuesday as caution persisted ahead of a number of key economic readings this week, while Japanese markets rallied after a long weekend.

Regional markets took average cues from a flat overnight close on Wall Street as the anticipation of closely watched U.S. inflation data this week kept investors on edge.

US stock index futures were flat in Asian trade. US consumer price index inflation data is the biggest point of interest for markets this week.

Nikkei, TOPIX rise in catch-up trade, GDP on tap

Japan and indexes rose 2.3 percent and 1.8 percent respectively, extending a rally from late last week.

Both indexes tumbled into bear market territory last week following bullish signals from the Bank of Japan. But less hawkish comments from some BOJ officials and a weaker yen helped Japanese stocks recoup most of their losses.

Some positive earnings also helped sentiment, particularly in the chipmaking sector.

This week the focus is squarely on the second quarter data, where traders will be on the lookout for any signs of improving growth.

Japan’s economy shrank substantially more than expected in the first quarter, dampening sentiment about the country. But any improvement in growth also gives the BOJ more room to raise interest rates this year.

Chinese stocks lag earnings, economic indicators on tap

The underperformance of Chinese markets persisted and moved into a flat to lower range on Tuesday. Hong Kong’s index also water.

Some of China’s biggest firms are set to report quarterly and half-yearly earnings this week, with major Hong Kong-listed companies including Tencent Holdings Ltd (HK: ), Alibaba Group (HK: ) (NYSE: ), JD .com (HK). :), members of the CK Group and China Unicom (NYSE:) Hong Kong (HK:) declines in the coming days.

Traders will be watching to see if Chinese firms have been able to cope with the country’s seemingly dire economic conditions.

Beyond the earnings, the focus is also on readings in the country, which follow on Thursday.

The Indian stock market is open, with Adani in the spotlight

India index futures indicated a slightly negative open after the index saw wild swings on Monday before falling.

Sentiment in Indian markets has been rocked by allegations of collusion between India’s securities regulator and conglomerate Adani Group raised by short seller Hindenburg.

Shares in Adani Group fell on Monday, with losses in the group’s flagship Adani Enterprises Ltd (NS:) and Adani Ports and Special Economic Zone Ltd (NS:) also set India’s equity benchmarks.

Indian markets also felt a slightly more hawkish than expected stance from the Reserve Bank last week.

Broader Asian shares were mostly lower. Australia rose 0.2% as data showed they improved slightly in August.

South Korea fell 0.1%.