Asian Shares End Higher Ahead Of Key Inflation Readings

(RTTNews) - Asian stocks advanced on Monday while the dollar held firm as investors awaited U.S., European, Japanese and Australian inflation readings this week for clarity on the global interest rate outlook.

Regional trading volumes were thin due to holidays in Britain and the United States. Gold recovered some ground after hitting a two-week low in the previous session.

Oil prices were modestly higher in Asian trading as markets awaited an OPEC+ meeting on June 2 where producers are expected to discuss maintaining voluntary output cuts for the rest of the year.

The Federal Reserve's preferred inflation gauge - the core personal consumption expenditure (PCE) price index - for April will be released on Friday and is expected to show modest relief.

The European Central Bank is widely expected to cut rates from historic highs next week on the back of a downward trend in inflation.

European Central Bank Chief Economist Philip Lane is due to speak about inflation in Dublin later today.

China's Shanghai Composite index rallied 1.14 percent to 3,124.04 after official data showed profits at China's industrial firms rose 4.3 percent in the first four months from the same period last year.

Hong Kong's Hang Seng index jumped 1.17 percent to 18,827.35 ahead of China's official PMI figures out on Friday.

Japanese shares rose notably after Bank of Japan Governor Kazuo Ueda said the country has 'made progress in moving away from zero and lifting inflation expectations.'

The Nikkei average rose 0.66 percent to 38,900.02 while the broader Topix index settled 0.87 percent higher at 2,766.36.

Financials topped the gainers list as Japanese government bond yields hit fresh decade peaks. Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group both rose over 1 percent.

Seoul stocks posted strong gains to snap a four-day losing streak as investors hunted for bargains. The Kospi average climbed 1.32 percent to close at 2,722.99.

Australian markets closed higher, led by mining and banking stocks. Gold miners rebounded after four straight sessions of losses.

The benchmark S&P ASX 200 jumped 0.79 percent to 7,788.30 - snapping a four-day losing streak. The broader All Ordinaries index closed up 0.74 percent at 8,058.60.

Property and investment firm Lendlease Group soared 8 percent after an announcement that it plans to exit its overseas construction operations.

Across the Tasman, New Zealand's benchmark S&P NZX-50 index slipped 0.23 percent to 11,756.

U.S. stocks advanced on Friday, rebounding from sharp losses seen in the previous session as new data signaled an improving consumer outlook on inflation.

New orders for key U.S.-manufactured capital goods rebounded more than expected in April while consumer sentiment deteriorated slightly less than previously estimated in May and consumer inflation expectations moderated from earlier reading, separate set of data revealed.

The tech-heavy Nasdaq Composite surged 1.1 percent to a new record closing high and mark a fifth straight week of gains.

The S&P 500 climbed 0.7 percent while the Dow ended flat with a positive bias.