Asian Shares Decline In Cautious Trade; Nikkei Gains

(RTTNews) - Asian stocks retreated on Monday as investors awaited U.S. inflation data and comments from Fed officials for additional clues on the outlook for interest rates. Upcoming French and U.K. elections and Thursday's clash between U.S. Democratic President Joe Biden and Republican former President Donald Trump also remained on investors' radar.

Gold edged up on softer bond yields while oil was marginally lower, extending declines from Friday on concerns of higher-for-longer interest rates.

China's Shanghai Composite index fell 1.17 percent to 2,963.10 and the yuan hit a seven-month low after data showed China's fiscal revenue dropped 2.8 percent in the first five months of 2024 compared to the previous year.

Hong Kong's Hang Seng index finished marginally lower at 18,027.71 as China and the European Union agreed to start talks on the increased tariffs on electric vehicles.

Japanese markets bucked the weak trend to end higher as the Bank of Japan's summary of opinions from its June 13-14 policy meeting showed board members debated the need for timely rate hike.

The Nikkei average rose 0.54 percent to 38,804.65 while the broader Topix index settled 0.57 percent higher at 2,740.19.

A weaker yen bolstered shares of export-related companies after a top currency official said authorities are ready to intervene to support the currency 24-hours a day, if needed.

Automakers Mazda Motor, Honda Motor, Toyota rose between 1.2 percent and 2.5 percent.

Seoul stocks ended notably lower, with the Kospi average falling 0.70 percent to 2,764.73.

Australian markets closed lower due to losses among commodity stocks. Markets also awaited the release of the Australian May consumer price data on Wednesday to clues to the monetary policy path ahead.

The benchmark S&P/ASX 200 fell 0.80 percent to 7,733.70 while the broader All Ordinaries index ended down 0.81 percent at 7,975.10.

Star Entertainment shares slumped 4.1 percent after the casino operator lowered its expectations for full-year earnings and revenue.

Premier Investments surged 6.9 percent after Myer Holdings offered to acquire its apparel business through an all-scrip merger. Shares of the latter soared 20.2 percent.

Across the Tasman, New Zealand's benchmark S&P/NZX 50 index slid 0.47 percent to 11,627.86 despite May trade surplus exceeding expectations.

U.S. stocks ended narrowly mixed on Friday as semiconductor shares slumped for a second day running and Treasury yields rose on data showing U.S. business activity crept up to a 26-month high in June.

Existing home sales fell for a third straight month in May and the leading indicators for the U.S. economy declined for the third month in a row, separate reports revealed.

The Dow finished marginally higher while the tech-heavy Nasdaq Composite and the S&P 500 both eased by 0.2 percent amid a large options expiry.