Asian stocks mostly increased on Tuesday, following modest overnight gains on Wall Street. But caution in expectation of additional economic clues from important inflation figures kept most bourses trading in a narrow range.

The Nasdaq’s overnight rise was followed by a strong day for technology stocks. The KOSPI in South Korea and the Taiwan Weighted index both increased by roughly 0.7%. Whereas the Hang Seng in Hong Kong increased by 0.2%.

Asian stocks rise on Kazuo Ueda to be the next Governor of the Bank of Japan.

As the government named academic Kazuo Ueda to be the next Governor of the Bank of Japan. Japan’s Nikkei 225 index increased by 0.7%, recovering from recent losses.

In the near future, Ueda is expected to maintain the monetary policy, particularly the bank’s ultra-low interest rates, resulting in an accommodative environment for Japanese stocks.

He is a renowned expert on monetary policy who holds a doctorate from the Massachusetts Institute of Technology. The first BOJ governor with an academic background will be Ueda.

After working as a professor at the University of Tokyo, he was a member of the central bank’s policy board from 1998 to 2005.

Asian stocks are positive as Japan’s economy rose less than estimated

In addition, local stocks looked at data that showed that Japan’s economy grew less than expected in the fourth quarter of 2022, with high inflation and waning overseas demand for Japanese goods continuing to exert pressure.

US CPI later today cautions  the markets

Later in the day, consumer price index (CPI) inflation numbers are expected. Broader Asian stock markets edged higher. Although it is anticipated that the reading will continue to trend at relatively high levels. It is still anticipated to have eased further in January from the month before.

Markets are also wary of any upside-core inflation surprises that could encourage the Federal Reserve to keep raising interest rates.

As foreign capital flows to the region decrease and regional central banks also tighten policy to keep up with the Fed, rising interest rates are likely to put even more pressure on Asian stocks.

On Tuesday, the BSE Sensex 30 and Nifty 50 indexes each gained approximately 0.4 percent. Indian CPI inflation grew more than anticipated in January, according to data on Monday, supporting the Reserve Bank’s hawkish statements from last week.

It is now anticipated that the RBI will continue to raise interest rates, which may indicate a negative outlook for local stocks.

Despite data indicating a sharp decline in consumer sentiment at the beginning of February, Australia’s ASX 200 index gained 0.2%. Australia’s economic slowdown and slower spending could be predicted by the trend.

Selected Asian Stock Market Indices Table