Markets Edge Higher Amid Inflation Data Hopes and Rising Oil Prices

Asian shares rose cautiously ahead of key U.S. and EU inflation data, and oil prices increased following conflicts in the Middle East. Investors are also awaiting Nvidia's earnings report, with significant expectations set. Federal Reserve Chair Jerome Powell's remarks have heightened hopes for rate cuts to sustain the labor market.

Asian shares inched higher on Monday, while the dollar and bond yields fell as investors anticipated key inflation data from the U.S. and Europe, hoping it would lead to interest rate cuts.

Oil prices surged by 0.7% after Israel and Hezbollah exchanged rocket fire and airstrikes, raising fears of supply disruptions. Brent crude gained 51 cents to reach $79.53 per barrel, and U.S. crude climbed 50 cents to $75.33 per barrel.

All eyes are on Nvidia's upcoming earnings report on Wednesday, with the company's stock up approximately 150% this year. High expectations suggest the AI giant needs to deliver sales of $30 billion or more to satisfy investors.

Early Monday trading saw S&P 500 and Nasdaq futures dip by 0.1%, while the Yen strengthened against a weakening dollar, impacting Japanese stocks negatively. The Federal Reserve's Jerome Powell hinted at easing policies to support employment, raising hopes for a soft economic landing.

Upcoming U.S. consumption and EU inflation data will be crucial for rate cut decisions in September. Markets currently anticipate several rate cuts from the Federal Reserve by year's end. Similarly, the European Central Bank is expected to reduce rates next month.

Gold prices remained near record highs, underpinned by a weaker dollar and lower bond yields.

(With inputs from agencies.)