Asian stocks pared early gains on Tuesday, failing to sustain an initial upward move after overnight data showed U.S. consumers revved up their retail spending last month. The ongoing speculation over Fed tapering its asset-purchase program dented investor sentiment to some extent as traders eyed a slew of data including, German economic sentiment data due later in the day, and US reports on industrial production, housing starts and jobless claims due out this week for directional cues.
Tokyo stocks edged lower as investors took profits in overbought real estate and financial stocks. The benchmark Nikkei average slid 0.2 percent to 14,758, while the broader Topix index slipped 0.1 percent. A halt in the yen's slide weighed on exporters, dragging Honda Motors and Tokyo Electron down about a percent each, while realty stocks such as Mitsubishi Estate, Mitsui Fudosan, and Sumitomo Realty & Development lost 4-6 percent.
Game maker Konami Corp. soared over 12 percent following a Mitsubishi UFJ Morgan Stanley Securities upgrade to "outperform" from "underperform." Astellas Pharma advanced 2.9 percent after the company forecast a 33 percent jump in net profit for 12 months to March 2014. Panasonic jumped 5.7 percent on a Nikkei report that it will raise its capital ratio to at least 30 percent by the year through March 2016.
Shares of Sharp gained 4.9 percent ahead of its earnings announcement scheduled to be released after the market close. The electronics giant reported a record annual loss for the second straight year and said it plans to appoint Executive Vice President Kozo Takahashi as its new president in a managerial shake-up.
China's Shanghai Composite index fell 1.1 percent after JPMorgan Chase & Co. cut its second-quarter growth forecast for the nation's economy to 7.8 percent from 8 percent and the annual growth forecast to 7.6 percent from 7.8 percent, citing weak domestic demand. Property developers led the decliners on reports Beijing has tightened rules for the pre-sale of homes. Hong Kong's Hang Seng index ended down 0.3 percent at 22,930.
Australian shares moved in a tight range before ending modestly higher as investors awaited tonight's federal budget, with analysts expecting Treasurer Wayne Swan to show a $17 billion deficit this year and a $10 billion deficit for 2013-14. The benchmark S&P/ASX 200 rose 11 points or 0.2 percent to 5,221.
Miners turned in a mixed performance despite a weaker Australian dollar. BHP Billiton rose 0.4 percent, while Rio Tinto eased 0.1 percent. Gold miner Newcrest retreated 2.5 percent to close near its eight-year low hit last month. Among the major banks, Commonwealth advanced 1.3 percent, but NAB, Westpac and ANZ fell between 0.2 percent and 0.7 percent.
Shares of Air New Zealand rallied 2.9 percent to a five-year high after Tony Carter of Fisher and Paykel Healthcare agreed to take the reins from existing Chairman John Palmer after he steps down in September this year. CSL, QBE Insurance and Brambles rose 1-3 percent.
South Korea's Kospi average closed 1 percent higher, as investors went bargain hunting in automakers amid an appreciating yen. Hyundai Motor rose 2.7 percent, while shares of its affiliate Kia Motors climbed 3.8 percent.
New Zealand shares lost ground, tracking mixed regional cues. The benchmark NZX-50 ended 0.6 percent lower, with 29 of its components ending in the red. Newly-listed MightyRiverPower tumbled 3.8 percent on heavy trading volume, pay-tv operator Sky Network Television lost 2.2 percent and heavyweight Telecom declined 1.1 percent, while Fletcher Building, the nation's largest construction company, closed 0.7 percent higher.
In economic news, New Zealand retail sales rose less than expected in the first quarter, as a warmer than usual start to autumn sapped consumers' appetite to buy clothing and footwear, data from Statistics New Zealand showed. The total volume of retail sales rose 0.5 percent compared to the previous months, with sales volumes rising in 10 of the 15 retail industries.
India's benchmark Sensex was moving up 0.2 percent after government data showed India's headline inflation slowed for a third straight month in April to a 41-month low of 4.89 percent, allowing room for the RBI to extend monetary easing to revive flagging growth. Elsewhere, Indonesia's Jakarta Composite index was moving up half a percent, while the markets in Malaysia, Singapore and Taiwan were up marginally.
U.S. stocks paused for breath after recent record gains overnight, with a report from the Commerce Department showing an unexpected increase in retail sales in April helping to limit the downside. The Dow slid 0.2 percent, but the tech-heavy Nasdaq and the S&P 500 edged up marginally.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.