TOKYO- Asian shares fell and US stock futures were steady on Tuesday as caution ahead of a US Federal Reserve meeting and a slew of corporate earnings offset growing optimism about the global economic recovery from the COVID-19 blow.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.14 percent. Australian stocks dropped 0.51 percent, but shares in China were little changed. Stocks in Tokyo edged 0.11 percent lower.
S&P 500 e-mini stock futures rose 0.07 percent.
Oil rebounded in Asian trading after major oil producers stood by their demand forecasts, but there are still downside risks due to surging COVID-19 cases in India, the world’s third-biggest oil importer.
Analysts said some investors may be taking profits on equities, but sentiment remains positive due to rising coronavirus vaccination rates in many countries.
“There are two reasons to remain positive on equities and commodities,” said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management Co in Tokyo.
“The global economy is likely to continue to strengthen and many advanced economies are heading for a reopening due to progress in vaccinations.”
However, despite the hopeful signs, a bullish session on Wall Street failed to inspire Asian markets. The S&P 500 and Nasdaq closed at record highs on Monday, fuelled by heavyweight growth stocks ahead of a deluge of earnings reports this week. The Dow Jones Industrial Average ended 0.18 percent lower.
