Frankfurt .
Supported by recent gains on Wall Street, Asian stock markets rose on Tuesday. Investors’ caution over upcoming US inflation data limited gains. “The Japanese market opened in positive territory, but was unable to maintain this momentum. Market participants are cautious about the US inflation data as well as the results of the FOMC (US Federal Open Market Committee) and the Japanese central bank meeting next week,” said Shigetoshi Kamada of Tachibana Securities.
Investors’ appetite for risk will also be tested this week by the world’s largest initial public offering, when British chip designer Arm Holdings aims to raise nearly $5 billion in New York.
The Nikkei index, which includes 225 stocks, was 0.8 percent higher at 32,723 points. The broader Topix index rose by more than 0.5 percent to 2,378 points. Technology start-up investor SoftBank gained two percent and gave the Nikkei the biggest boost. The owner of the fashion brand Uniqlo, Fast Retailing, gained 1.4 percent. Toyota Motor shares rose 2.2 percent, leading the Topix gainers, while the transportation sector rose 1 percent. The pharmaceutical sector gained 1.19 percent, making it the biggest gainer among the Tokyo Stock Exchange’s 33 sector sub-indices.
The Shanghai stock exchange was trading largely unchanged. The index of major companies in Shanghai and Shenzhen lost 0.2 percent.
Investors are also awaiting U.S. inflation data for August on Wednesday, which is expected to provide guidance on the Federal Reserve’s interest rate path. “A lower-than-expected reading could slow the US dollar’s rise, while a higher reading could unsettle risk sentiment as it would reinforce market expectations for further rate hikes, which could strengthen the dollar,” said OCBC strategist Christopher Wong.
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