SINGAPORE- Asian equities rose slightly on Tuesday, to stand just off their lowest since November 2022, while the dollar eased as traders avoided bets ahead of economic data expected to offer clues to the next steps by the US Federal Reserve.
Oil prices recovered some of the previous day’s losses as markets worried that the Israel-Hamas war could escalate into a wider conflict in the oil-exporting region.
MSCI’s broadest index of Asia-Pacific shares outside Japan reversed losses to trade 0.41 percent higher at 476.72, off a prior level of 472.73, the lowest since November 2022.
Down 3 percent for the month, the index is set for a third consecutive month in the red.
Japan’s Nikkei was up 0.21 percent after an earlier slide of as much as 1.4 percent .
Futures showed European stocks poised to open lower, with the Eurostoxx 50 futures down 0.10 percent , German DAX futures down 0.11 percent and FTSE futures 0.16 percent lower.
“The looming specter of inflation grows even more imposing, especially considering the recent sharp ascent in oil prices,” said Dalma Capital Chief Investment Officer Gary Dugan.
“If oil prices persist at this level throughout the rest of 2023 and into 2024, this could potentially inject another bout of inflation into the global economy.”
Investor attention will be split this week between the earnings of high-profile companies, such as Microsoft Facebook parent Meta Platforms and Amazon as well as a slew of economic data ahead of the Fed’s meeting from Oct. 31 to Nov. 1.
The US Commerce Department will announce third-quarter gross domestic product on Thursday, while the Personal Consumption Expenditures (PCE) report, the US central bank’s preferred inflation gauge, is due on Friday.
But before that investors will parse the flash purchasing managers’ index (PMI) data from Britain, France, the Euro zone and the United States due later on Tuesday.
The data barrage precedes central bank meetings in the next two weeks, with the European Central Bank set to meet on Thursday and expected to keep rates steady, a Reuters poll of 85 analysts shows. – Reuters