MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.7 percent on Tuesday, after US stocks ended the previous session with mild gains. The index is down 2.9 percent so far this month.

The yield on benchmark 10-year Treasury notes rose to 4.0885 percent compared with its US close of 4.078 percent on Monday. The two-year yield, which rises with traders' expectations of higher Federal Reserve fund rates, touched 4.7682 percent compared with a US close of 4.758 percent.

Data showed China's imports contracted at 12.4 percent in July, missing forecasts for a drop of 5 percent, while exports fell 14.5 percent, compared with a fall of 12.5 percent tipped by economists.

Hong Kong's Hang Seng Index started to recover some ground lost earlier in the day, but was still down 1.26 percent after opening 1.73 percent in the red.

Sentiment rebounded in China as the blue chip CSI300 index turned positive to be up 0.07 percent after initially losing 0.54 percent.

Prospects

Every Monday

With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.

View More Newsletter

By registering, you agree with The Jakarta Post's Privacy Policy

Sign Up

Thank You

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

Australian shares were up 0.15 percent, while Japan's Nikkei stock index rose 0.29 percent after early trading up by nearly 0.8 percent.

The mixed day in Asia follows a stronger night in US markets.

On Wall Street, the Dow Jones Industrial Average rose 1.16 percent, the S&P 500 gained 0.90 percent and the Nasdaq Composite added 0.61 percent.

Global investors are keenly awaiting inflation readings from China on Wednesday and the US on Thursday, expecting them to show stark differences in price movement in the world's two biggest economies.

US inflation likely accelerated slightly in July to an annual 3.3 percent, while the core rate was likely unchanged at 4.8 percent, according to a Reuters poll of economists. ANZ predicts China's July consumer price index to come in at minus 0.4 percent year-on-year.

"The Fed is wary of upside risks to elevated inflation given demand for labor remains excessive, and most policy makers think the policy rate will need to be kept restrictive," ANZ economists wrote on Tuesday.

"Weak inflation in China should be a global disinflationary force in goods markets going forward."

The prospect of economic stimulus from China's central government to reinvigorate a soft economy is still being contemplated by investors. Minor measures to help property markets have been delivered in the past fortnight, but no broad stimulus has been outlined.

"While awaiting ominous signs of deflation, markets are torn between economic gloom and hopes of resounding stimulus that is set to re-ignite China's growth," Mizuho economists said.

"We are however unconvinced that Beijing's stimulus efforts will achieve intended 'lift-off' for the still struggling economy."

The dollar rose 0.54 percent against the yen at 143.26. It is still some distance from its high this year of 145.07 hit on June 30.

The European single currency was down 0.2 percent on the day at $1.1002 while the dollar index, which tracks the greenback against a basket of currencies of major trading partners, was up at 102.29.

US crude ticked up 0.21 percent to $82.11 a barrel. Brent crude rose to $85.46 per barrel.

Gold was slightly lower with the spot price at $1934.1667 per ounce.

Popular

State-sanctioned intolerance

Why EV makers choose Vietnam, not nickel-rich Indonesia

Indonesia opts against visa fee hike to spur tourism