(Bloomberg) — Asian stocks were set for a cautious open ahead of key economic data and a looming deadline on the potential extension of US tariffs on Chinese exports.
US stock futures were steady while the dollar was in a tight range against major peers in early Asian trading. Contracts indicated Australian and mainland Chinese shares may open flat while Hong Kong was set for a gain. Oil fell 0.5%, its seventh decline in eight days. Japan’s markets are closed for a holiday.
The modest moves come as traders awaited critical economic data from the US could shape interest-rate expectations, while the tariff deadline will influence trade sentiment. One key data point will be the US inflation print, which will provide more insight into the Federal Reserve’s rates outlook, with fears the economy is teetering on the edge of stagflation.
“Stagflation creates a dilemma for the Federal Reserve as it challenges their dual mandate of maximum employment and price stability,” Joe Unwin, head of portfolio management at Apostle Funds Management, wrote in a note. “This could lead to a scenario where interest rates remain elevated despite weaker economic growth, which would be bearish for almost all traditional asset classes.”
Oil extended its biggest weekly decline since end-June as US President Donald Trump plans to meet with his Russian counterpart Vladimir Putin in Alaska on Friday, raising the prospect of an end to the war in Ukraine and increased oil supply.
Technology stocks will be in focus after Nvidia Corp. and Advanced Micro Devices Inc. agreed to pay 15% of their revenues from chip sales to China to the US government as part of a deal with the Trump administration to secure export licenses.
Investors will also be watching Asian lithium shares after battery giant Contemporary Amperex Technology Co. Ltd. suspended production at a major mine in China’s Jiangxi province for at least three months.
Chinese retail sales and industrial production data due later this week will be parsed after consumer and producer price data at the weekend indicated demand remains fragile. Traders are also waiting for confirmation that the Aug. 12 deadline for talks on US duties on Chinese imports will be extended.
“The market has fully subscribed to the high probability of the tariff truce being rolled over for another 90 days,” said Chris Weston, head of research at Pepperstone Group in Melbourne.
Elsewhere, Australia’s central bank is expected to ease policy on Tuesday as inflationary pressures ebb. Still, Governor Michele Bullock is expected to stick with her cautious stance on the monetary policy outlook.
“We would still call the level of interest rates as slightly restrictive,” Diana Mousina, deputy chief economist at AMP Ltd. wrote in a note. “But we think that the RBA will still sound cautious on giving too much forward guidance and remain of the view that interest rates do not need to be aggressively cut for now.”
Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 8:16 a.m. Tokyo time Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1648 The Japanese yen was little changed at 147.72 per dollar The offshore yuan was little changed at 7.1891 per dollar Cryptocurrencies
Bitcoin rose 0.5% to $118,945.17 Ether rose 0.5% to $4,240.36 Commodities
West Texas Intermediate crude fell 0.5% to $63.58 a barrel Spot gold fell 0.1% to $3,393.04 an ounce This story was produced with the assistance of Bloomberg Automation.
©2025 Bloomberg L.P.