Asian Markets Edge Higher as Dollar Steadies Ahead of Key U.S. Inflation Data

Asian equities showed modest gains while the dollar stabilized after recent declines, with traders awaiting crucial U.S. consumer price data and monitoring trade negotiations between Washington and Beijing. Japan's Nikkei 225 futures climbed to 42,465 during a market holiday, suggesting potential for testing record highs later this week.

All eyes remain on the impending deadline for new U.S. tariffs on Chinese goods, widely expected to be extended. The geopolitical spotlight shifts to Friday's planned meeting between U.S. President TRUMP and Russian President Putin in Alaska, where Ukraine conflict discussions will dominate.

Tuesday's U.S. core CPI release looms large, with analysts forecasting a 0.3% monthly increase that WOULD push the annual rate to 3.0% - further above the Federal Reserve's target. The dollar index held at 98.25 after last week's 0.4% drop, while USD/JPY remained flat at 147.685 amid Japanese market closures.

Semiconductor trade policies remain a critical focus as Trump's August 12 negotiation deadline approaches. "Markets have fully priced in an extension," noted Pepperstone Group's Chris Weston, suggesting traders anticipate another 90-day reprieve in the ongoing trade tensions.