Asian Markets Edge Up as Investors Eye Inflation Data and Geopolitical Tensions

Asian shares rose cautiously on Monday, while the dollar and bond yields declined, as investors anticipate inflation data which might prompt rate cuts in the U.S. and Europe. Oil prices increased amid geopolitical tensions. Investors await Nvidia's earnings. The market is pricing in several rate cuts by the Fed and ECB.

Asian shares inched higher on Monday, showing cautious optimism as investors await critical inflation data anticipated to guide potential rate cuts in the U.S. and Europe. Concurrently, the dollar and bond yields softened, reflecting heightened market anticipation.

Oil prices surged by 0.8% following a weekend of rocket exchanges and airstrikes between Israel and Hezbollah, raising fears of possible supply disruptions should the conflict escalate. Brent crude saw a hike of 55 cents, trading at $79.57 a barrel, while U.S. crude rose by 56 cents, reaching $75.39 per barrel.

Investors also have their eyes fixed on Nvidia, with its earnings report scheduled for Wednesday. The tech giant's stock has surged by 150% year-to-date, and its performance is pivotal, contributing significantly to the S&P 500's 17% year-to-date gain. Market analysts expect Nvidia to surpass consensus expectations, though even a strong showing could trigger a 'sell the news' event.

(With inputs from agencies.)