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Asian stock markets : https://tmsnrt.rs/2zpUAr4

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Nikkei up 0.3%, holidays make for thin trading

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U.S. and EU inflation figures feature this week

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Central bank speakers abound before ECB meeting next week

By Wayne Cole

SYDNEY, May 27 (Reuters) - Asian shares edged higher on

Monday as investors braced for a busy week of data which

culminates in a key U.S. inflation report that could set the

stage for a cut in interest rates there, albeit not for a few

months yet.

Holidays in the United States and UK made for thin trading

ahead of Friday's figures on core personal consumption

expenditures (PCE), the Federal Reserve's preferred measure of

inflation. Median forecasts are for a rise of 0.3% in April,

keeping the annual pace at 2.8%, with risks on the downside.

"Consumer and producer price data suggest core PCE inflation

lost further momentum in April after a strong start to the year.

Indeed, we look for the core index to advance 0.22% m/m vs 0.32%

in March and an initial 0.25% estimate," said analysts at TD

Securities in a note.

"We also look for the headline to rise 0.23% m/m while the

super core likely cooled to 0.26%."

Figures for inflation in the euro zone are also due on

Friday and an expected tick up to 2.5% should not stop the

European Central Bank from easing policy next week.

Policy makers Piero Cipollone and Fabio Panetta both flagged

a coming cut over the weekend, while markets imply an 88% chance

of an easing to 3.75% on June 6.

The Bank of Canada might also ease next week, while the Fed

is seen waiting until September for its first move.

There are at least eight Fed officials due to speak this

week, including two appearances by the influential head of the

New York Fed John Williams.

The head and deputy head of the Bank of Japan speak later on

Monday, along with the ECB's chief economist. The BOJ holds its

policy meeting on June 14 and there is some chance it may buck

the global trend and hike rates again, albeit to a modest 0.15%.

The prospect of lower borrowing costs across much of the

globe has been positive for equities and commodities, though

many markets did run into profit taking last week.

MSCI's broadest index of Asia-Pacific shares outside Japan

firmed 0.1%, having slipped 1.5% last week and

away from a two-year peak.

Japan's Nikkei rose 0.3%, ahead of a reading on

Tokyo consumer prices later in the week.

S&P 500 futures were flat, while Nasdaq futures

dipped 0.1% having hit record highs last week after

Nvidia ( NVDA ) beat expectations.

Indeed, Nvidia ( NVDA ) alone has accounted for a quarter of the S&P

500's gains so far this year, while the Magnificent 7 tech

darlings are up 24% for the year.

In currency markets, attention was again centred on the yen

and the risk of Japanese intervention ahead of the 160.00 level.

The dollar stood at 156.89 yen, having added 0.9% last

week and close to its recent top of 160.245.

Japan renewed its push to counter excessive yen falls during

a weekend gathering of Group of Seven (G7) finance leaders,

after a recent rise in bond yields to a 12-year high failed to

slow the currency's decline.

The euro was steady at $1.0845, and short of its

recent top at $1.0895.

Gold was holding at $2,337 an ounce, having recoiled

3.4% last week and off an al-time peak of $2,449.89.

Oil prices were stuck near four-month lows amid concerns

about demand as the U.S. driving season gets underway this week.

Investors are waiting to see if OPEC+ will debate new production

cuts at an online meeting on June 2, though analysts doubt there

will be a consensus for a move.

Brent was up 5 cents at $82.17 a barrel, while U.S.

crude rose 9 cents to $77.81 per barrel.