Asian stocks saw modest movement on Tuesday as investors weighed fresh political uncertainty in Europe, as reported by Reuters. Gains by right-wing parties in recent elections and an upcoming snap poll in France raised concerns about the unity of the European Union. MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.4 per cent in thin trading, while Chinese blue chips fell 0.7 per cent. Japan's Nikkei defied the trend, firming 0.3 per cent, and South Korea's stock market rose 0.5 per cent. European futures markets showed signs of stability after Monday's retreat. EUROSTOXX 50 futures edged up 0.2 per cent, and FTSE futures gained 0.1 per cent. The euro, French stocks, and government debt came under pressure earlier as investors assessed the potential impact of right-wing victories in upcoming French elections. Markets gave a subdued reaction to Apple's long-awaited announcement of its artificial intelligence strategy. The iPhone maker's shares fell 0.3 per cent in after-hours trading, after slipping 1.9 per cent during regular trading hours. S&P 500 futures and Nasdaq futures both dipped 0.1 per cent in Asian trading, following modest gains on Monday. The market has remained resilient despite the recent rise in US yields triggered by Friday's jobs report and tempered expectations for Federal Reserve rate cuts. Analysts at JPMorgan expect the Fed to hold steady at its policy meeting on Wednesday and maintain a defensive stance in their portfolio recommendations due to a number of lingering risks, including political uncertainty and frothy market activity. The focus of the Fed meeting will be on whether the central bank maintains its projections for three rate cuts this year. Analysts at Goldman Sachs predict the Fed will signal two rate cuts in 2024, with further cuts in subsequent years. The consumer price index (CPI) is expected to show a slight increase in May, with core inflation rising 0.3 per cent. The euro steadied around $1.0766 after hitting a one-month low overnight. The dollar remained firm against the yen at 157.17 yen. Oil prices consolidated on Tuesday following Monday's three per cent surge, with some investment banks forecasting strong summer demand and potential US crude purchases for its strategic reserves.
