In the U.S., the core personal consumption expenditure (PCE) price index for June – which is watched by the Federal Reserve as an estimate of inflation — rose 1.5 percent on-year, Reuters said. The PCE price index rose 0.1 percent on-month in June, reflecting tepid inflation, Reuters reported.
Meanwhile, U.S. consumer spending rose just 0.1 percent in June, while the ISM manufacturing index stood at 56.3, reflecting an expansion in factory activity.
The greenback was a tad higher after hitting a 15-month low earlier in the session on a mix of political uncertainty stateside and market expectations of further rate hikes from the Fed.
The dollar index, which measures the dollar against a basket of rival currencies, stood at 93.049 at 8:13 a.m. HK/SIN, off a low of 92.777 touched overnight but remained subdued. Against the yen, the dollar fetched 110.45 yen, off a low of 110.28 yen seen earlier in the overnight session.
In Europe, a preliminary reading on gross domestic product (GDP) from the European Union reflected that second-quarter economic growth in the euro zone was healthy, Reuters reported. The EU’s estimate reflected GDP rose 0.6 percent in the second quarter, compared with the quarter before, and 2.1 percent on year.
Early market movers included Japan’s Honda and Sony. Both companies reported first-quarter results after the market close Tuesday, with Honda topping earnings expectations and Sony announcing record profit. Honda shares soared 4 percent and Sony was up 0.74 percent.
Shares of Apple-suppliers received a boost from the release of Apple’s earnings Tuesday. The tech giant beat on the top and bottom lines. Shares of semiconductor maker SK Hynix jumped 3.51 percent and LG Display rose 3.03 percent in early trade.
Hong Kong-listed Macau gaming stocks could also be in focus after the Asian gaming hub said gross gaming revenues rose 29 percent on-year in July, Reuters reported.
On the earnings front, Rio Tinto and Standard Chartered Bank were among the big names due to report results Wednesday.
In energy news, oil prices continued to trend lower after falling more than two percent in the previous session. Brent crude fell 0.52 percent to trade at $51.51 a barrel and U.S. West Texas Intermediate crude declined 0.57 percent to trade at $48.89.
Oil had fallen from a two-month high overnight due to concerns over the increase in supply from global oil producers. Output from OPEC producers also increased in July despite the bloc’s output cut agreement, a survey from Reuters found on Monday.
The economic calendar for the Asian trading day is fairly light (all times in HK/SIN):
9:30 a.m.: Australia June building permits
4:30 p.m.: Hong Kong June retail sales
5:00 p.m.: Reserve Bank of India decision due
Stateside, equities finished the Tuesday session higher as earnings season continued. Of the S&P 500 companies that have reported quarterly results, 72 percent have beat the Street, compared with the typical quarter’s average of 64 percent topping expectations, Thomson Reuters data showed.