Asian Shares Mostly Lower On EU Political Uncertainty, Rate Concerns

(RTTNews) - Asian stocks ended mostly lower on Tuesday as gains by far-right in voting for the European Parliament added uncertainty to EU's political landscape and investors awaited key U.S. inflation data and the outcome of the Federal Reserve's policy meeting.

Market participants see diminished prospects for easing this year, with many analysts expecting the first rate cut by the Federal Reserve only in November.

The dollar held in a tight range and gold held above one-month lows while oil edged down slightly after Monday's 3 percent rally on hopes of strong summer demand for fuel and potential U.S. crude purchases for its petroleum reserve.

China's Shanghai Composite index dropped 0.76 percent to 3,028.05 as trading resumed after a long holiday weekend. Electric vehicle makers slumped as traders awaited the European Commission's decision of provisional duties.

Hong Kong's Hang Seng index tumbled 1.04 percent to 18,176.34.

Japanese markets ended slightly higher, tracking a weaker yen heading into Friday's BOJ policy meeting.

The central bank is expected to trim monthly purchases or clarify plans to proceed with a slow but steady taper after the conclusion of a two-day meeting.

The Nikkei average rose 0.25 percent to 39,134.79 while the broader Topix index settled 0.20 percent lower at 2,776.80. Among top gainers, Kokusai Electric jumped 3.8 percent and Tokyo Electron added 2.2 percent.

Seoul stocks ended higher, with the Kospi average rising 0.15 percent to 2,705.32, tracking overnight gains on Wall Street.

Top battery maker LG Energy Solution climbed 1 percent and leading pharmaceutical company Celltrion gained 1.6 percent.

Australian markets fell sharply, with material, gold mining and property developers pacing the decliners. BHP, Rio Tinto and Fortescue Metals Group shed 2-3 percent.

Gold miners Newmont, Northern Star and Evolution plummeted 3-6 percent. The benchmark S&P/ASX 200 gave up 1.33 percent to close at 7,755.40, marking its worst single-day loss in seven weeks. The broader All Ordinaries index ended down 1.32 percent at 8,005.90.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index finished marginally lower at 11,785.48.

U.S. stocks eked out modest gains in cautious trade overnight as traders positioned themselves for upcoming inflation data and a Federal Reserve meeting.

The tech-heavy Nasdaq Composite rose 0.4 percent and the S&P 500 added 0.3 percent to reach new record closing highs while the Dow inched up 0.2 percent.