Asian stocks muted before more rate cues; Indian shares tumble

Investing.com-- Most Asian stocks crept lower on Tuesday, cooling from recent gains as investors awaited more cues on interest rates this week, while Indian shares tumbled from record highs after early vote counting showed the BJP did not clinch as wide a victory as expected.

Regional stocks took middling cues from a mixed overnight close on Wall Street. While technology stocks rose tracking gains in NVIDIA Corporation (NASDAQ:NVDA), broader markets were muted amid signs of cooling economic activity.

U.S. stock futures were flat in Asian trade, with focus turning squarely towards upcoming labor data for more cues on interest rates. 

A string of central bank meetings are due in the coming days. The European Central Bank and the Bank of Canada are set to cut rates this week, while the Federal Reserve is set to keep rates steady next week. 

India’s Nifty 50 slides as Modi heads for narrow 2024 win

India's Nifty 50 index slid 2.3%, while the BSE Sensex 30 lost 2.6%, with both indexes tumbling from record highs hit on Monday.

Early vote counting showed that the incumbent BJP party was poised for a less sweeping win in the 2024 general elections than the exit polls had suggested, with the opposition, the Indian National Congress, gaining some ground in the country's lower house.

While a BJP victory still presented an unprecedented third consecutive term for Prime Minister Narendra Modi, a smaller majority will see Modi face more difficulty in doling out reforms and infrastructure spending. 

Broader Asian markets rangebound before more rate cues 

Broader Asian markets moved in a flat-to-low range, as anticipation of U.S. labor data and a string of key central bank meetings kept sentiment subdued. 

Japan’s Nikkei 225 index fell 0.5%, while the broader TOPIX lost 0.4%. 

Australia’s ASX 200 fell 0.1% following a batch of weak economic readings. A survey showed Australian companies clocked weaker-than-expected gross operating profits in the first quarter, while the country slipped into a current account deficit in the quarter. 

Net exports contribution to the gross domestic product also shrank 0.9% in the quarter, presenting a weak outlook for first quarter GDP data due on Wednesday.

China’s Shanghai Shenzhen CSI 300 rose 0.3%, while the Shanghai Composite fell 0.1% following mixed signals from key purchasing managers index data over the past two sessions. 

Technology-heavy indexes also retreated from strong gains in the prior session. South Korea’s KOSPI fell 0.4%, while Hong Kong’s Hang Seng index tread water.