Asian shares mostly lower, trading in a narrow range with US markets closed for Memorial Day

Stocks in Asia mostly declined on Tuesday, trading within a limited range following the closure of U.S. markets due to the Memorial Day holiday. U.S. futures were down and oil prices decreased. Later in the day, data on consumer confidence and housing prices were set to be released. The Nikkei 225 in Tokyo fell by 0.2% to 37,451.60 after the central bank governor hinted at a potential interest rate hike in the near future due to inflationary pressures. Bank of Japan Gov. Kazuo Ueda expressed concerns about rising food prices in Japan, where inflation has surpassed levels seen in the U.S. and Europe, exceeding the BOJ’s target. Ueda noted the challenges posed by trade policies, which could complicate the central bank’s efforts to raise its current benchmark interest rate of 0.5%. Hong Kong’s Hang Seng index rose by 0.3% to 23,359.94, while the Shanghai Composite remained steady at 3,346.48. The Kospi in South Korea dropped by 0.4% to 2,632.93, and Australia’s S&P/ASX 200 remained stable at 8,359.20. Meanwhile, Taiwan’s Taiex index decreased by 0.6%. In early trading on Tuesday, U.S. benchmark crude oil declined by 23 cents to $61.30 per barrel, and Brent crude, the global standard, dropped by 20 cents to $63.92 per barrel. The U.S. dollar weakened against the Japanese yen, trading at 142.23 yen compared to 142.85 yen previously, while the euro gained strength, rising to $1.1403 from $1.1388. Futures for the S&P 500 and the Dow Jones Industrial Average showed gains of 0.9% and 0.8%, respectively. European shares closed higher on Monday, with U.S. futures surging following President Donald Trump’s announcement of a delay in imposing a 50% tariff on EU goods until July 9. The DAX in Germany rose by 1.5% to 23,977.83, and the CAC 40 in Paris increased by 1% to 7,810.49. The impact of Trump’s tariff delay on the markets was minimal as investors have become accustomed to such policy shifts, noted Stephen Innes of SPI Asset Management. The EU’s chief trade negotiator reported positive discussions with U.S. officials and reiterated the commitment to reach a trade agreement by the July 9 deadline. Trump’s recent threats of tariffs had initially caused market fluctuations, with U.S. stocks closing lower last week. The S&P 500, Dow, and Nasdaq composite experienced declines, with the S&P 500 recording its worst performance in seven weeks.