Asian Shares Advance Ahead Of U.S. Inflation Data

Asian stocks rose broadly on Tuesday as focus shifted to U.S. inflation data due later in the day that could show some signs of softening in August.

The Federal Reserve, however, is still expected to deliver another 75 basis point interest rate hike next week after two such moves in June and July.

The dollar steadied ahead of the U.S. CPI data, while oil extended overnight gains amid uncertainty about a revival of the Iranian nuclear deal and growing speculation about the impact of Ukraine’s offensive around Kharkiv on the supply of Russian oil.

Chinese shares finished marginally higher, while Hong Kong’s Hang Seng Index slipped 0.2 percent to 19,326.86 after last week’s strong rebound.

Japanese shares eked out modest gains, led by energy and travel-related stocks. The Nikkei 225 Index rose 0.3 percent to 28,614.63, while the broader Topix closed 0.3 percent higher at 1,986.57.

Inpex Corp., Japan Petroleum, ANA Holdings and H.I.S. gained 1-4 percent. Video game maker Nintendo jumped 5.5 percent after it reported record domestic launch sales for its shooter “Splatoon 3” on the Switch console.

A strengthening yen weighed on the auto sector, with Mitsubishi Motors, Subaru and Mazda losing 2-4 percent.

Seoul stocks posted strong gains as traders returned to their desks following the four-day Chuseok fall harvest holiday.

The Kospi spiked 2.7 percent to 2,449.54, with tech and battery stocks leading the surge amid growing expectations that U.S. inflation may have peaked. Samsung Electronics, SK Hynix and Samsung SDI all rallied around 5 percent.

Australian markets hit over two-week high as banks benefited from expectations of higher interest rates. The benchmark S&P/ASX 200 Index gained 0.7 percent to end at 7,009.70, its highest closing level since August 26 and extending gains for a fourth straight session.

The broader All Ordinaries Index rose 0.6 percent to 7,253.70 after a measure of Australian consumer confidence increased for the first time in 10 months.

Ramsay Health Care shares slumped 10.4 percent after a KKR-led consortium said it was unwilling to improve its US$14.5 billion cash-and-stock offer for the hospital operator.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX-50 Index dropped 0.4 percent to 11,762.15.

U.S. stocks closed higher for a fourth consecutive session overnight and the dollar weakened amid expectations that inflation may have peaked. Ukraine’s military successes in the war with Russia also boosted sentiment.

The Dow rose 0.7 percent, the tech-heavy Nasdaq climbed 1.3 percent and the S&P 500 added 1.1 percent.

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