By Ambar Warrick

-- Most Asian stocks rose on Tuesday tracking some overnight strength in Wall Street, although caution in anticipation of more cues on the U.S. economy from key inflation data kept most bourses trading within a small range.

Technology stocks were the best performers for the day, tracking . South Korea’s and the index added about 0.7% each, while Hong Kong’s rose 0.2%.

Japan’s rose 0.7%, recovering from recent losses as the government nominated academic . Ueda is expected to keep monetary policy - particularly the bank’s ultra-low interest rates - unchanged in the near-term, which is expected to provide an accommodative environment for Japanese stocks.

Local stocks also looked past data that showed that Japan’s in the fourth quarter of 2022, amid continued pressure from high inflation and waning overseas demand for Japanese goods.

Broader Asian stock markets edged higher, but gains were limited in anticipation of U.S. (CPI) inflation data due later in the day. While the reading is expected to have eased further in January from the prior month, it is still expected to trend at relatively high levels.

Markets are also wary of any potential upside surprises in , which could give the Federal Reserve more impetus to keep raising interest rates.

Rising interest rates are likely to further pressure Asian stocks as foreign capital flows to the region dry up, and as regional central banks also tighten policy to keep pace with the Fed.

Indian stocks advanced on Tuesday, with the and indexes adding about 0.4% each. Data showed on Monday that Indian grew more than expected in January, lending credence to the Reserve Bank’s hawkish statements last week.

The RBI is now expected to keep raising interest rates, which could spell a negative outlook for local stocks.

Australia’s index crept 0.2% higher, although data showed that local deteriorated sharply in early-February. The trend could herald slower spending and a potential economic slowdown in Australia.