Meanwhile, economic data released Friday indicated a softening US labor market.
ASX futures were pointing 9 points or 0.1% higher as of 6:00am on Tuesday, suggesting gains at the open.
US stocks closed mostly higher Monday as investors looked ahead to key inflation data. The S&P 500 rose 0.1% and the Dow Jones Industrial Average added 0.3%, while the Nasdaq Composite closed flat.
Tech stocks struggled, with shares of Apple falling 1.6% and Google-parent Alphabet sliding 1.8%. Tesla shares fell 0.3% after the company said it will cut prices again on some electric vehicles. Meanwhile, shares of chipmakers rose after Samsung said it would cut production to support prices. Micron Technology gained 8%.
Investors are in for a busy week of economic data, including the latest consumer price and producer price index data for March, due out Wednesday and Thursday, respectively. These data will help determine if or when the Fed will pause or end its rate-hiking campaign.
In commodity markets, Brent crude oil dipped 1.0% to $US84.30 a barrel while gold lost 0.9% to US$1,990.60.
Australian government bonds were unchanged, with the 2 Year yield at 2.82% and the 10 Year yield at 3.18%. US Treasury notes declined, with the 2 Year yield slipping to 4.00% and the 10 Year yield falling to 3.41%.
The Australian dollar was lower, at 66.38 US cents after previously closing at 66.70. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, edged up to 96.35.
Asia
Chinese shares ended lower with investors in a wait-and-see mode after optimism from China's reopening died down. The country's first batch of registration-based initial public offerings debuted on main boards in Shanghai and Shenzhen markets after Beijing overhauled the IPO system. Shares of electronics distribution specialist Shenzhen CECport Technologies Co. more than tripled and Citic Metal Co. rose more than 70%. Liquor producers were among the decliners, with Wuliangye Yibin down 2.3% and Kweichow Moutai 1.1% lower. The benchmark Shanghai Composite Index closed 0.4% lower at 3315.36, the Shenzhen Composite Index was down 1.0% and the ChiNext Price Index retreated 0.1%.
Hong Kong markets were closed in observance of Easter Monday.
Japanese stocks ended higher, led by gains in shipping and game shares, as the yen weakened and concerns about further Fed tightening eased. Nippon Yusen gained 3.5% and Nintendo climbed 4.0%. Some cooling in the U.S. labor market may allow Fed officials to suggest a pause in their tightening cycle after a possible rate increase in May. Economic data are in focus for policy implications. The Nikkei Stock Average rose 0.4% to 27633.66.
India's Sensex index closed flat at 59846.51. Investors are likely to remain watchful ahead of India's earnings season, which will kick off later this week, said ICICI Direct Research analysts. Among gainers, Tata Motors climbed 5.4%, Wipro added 1.8% and Power Grid Corp. of India rose 1.7%. Decliners included Bajaj Finance, down 1.8%, IndusInd Bank, down 1.4% and Asian Paints (India), which slid 1.2%.
Europe
European markets were closed in observance of Easter Monday.
North America
US stocks closed mostly higher Monday as investors looked ahead to key inflation data. The S&P 500 rose 0.1% and the Dow Jones Industrial Average added 0.3% while the Nasdaq Composite closed flat.
Tech stocks struggled, with shares of Apple falling 1.6% and Google-parent Alphabet sliding 1.8%. Tesla shares fell 0.3% after the company said it will cut prices again on some electric vehicles. Meanwhile, shares of chipmakers rose after Samsung said it would cut production to support prices. Micron Technology gained 8%.
Investors are in for a busy week of economic data, including the latest consumer price and producer price index data for March, due out Wednesday and Thursday, respectively. These data will help determine if or when the Fed will pause or end its rate-hiking campaign.
“We’re seeing what we believe is the same investor narrative, which is uncertainty around the mixed economic data, which is driving uncertainty around Fed policy and a greater concern that the Fed may again move forward with another rate hike,” AXS Investments’ Greg Bassuk said.
“Investors have greater concerns about a potential US recession, and the markets seem to be under greater pressure as the Fed decision looms,” he added. The next Federal Reserve meeting is set for May 2 and 3.
Investors are coming off a long holiday weekend and responding to the March jobs report that came out on Good Friday when the New York Stock Exchange was closed. The report showed a resilient economy and moderate inflation, following some signs of weakening in the labor market earlier in the week.
Nonfarm payrolls grew by 236,000 for the month, about in line with the Dow Jones estimate of 238,000, the Labor Department reported. The unemployment rate fell to 3.5%, against expectations that it would hold from the previous month at 3.6%.
Investors are also awaiting the first batch of companies reporting first-quarter financial results. Three of the largest banks, JPMorgan Chase, Wells Fargo and Citigroup, and the largest health care company, UnitedHealth Group, are scheduled to report Friday.
