U.S. consumer price index (CPI) inflation figures are scheduled to be released later in the day. Analysts predict a figure of 0.4% for January (MoM).

The majority of Asian equities increased on Tuesday, after modest overnight gains on Wall Street, but caution in expectation of more economic clues from important inflation data kept most markets trading in a narrow range.

The Nasdaq's overnight gains were followed by a strong day for technology companies.

Data indicating that Japan's economy expanded less than anticipated in the fourth quarter of 2022, under pressure from rising inflation and declining global demand for Japanese exports, went unnoticed by local stocks.

As U.S. consumer price index (CPI) inflation figures are scheduled to be released later in the day, Asian stock markets managed to squeak out a little gain.

Although the reading is projected to have decreased even more from the previous month to January, it is still predicted to trend at quite high levels.

Markets are also on the lookout for any potential surprises to the upside in core inflation since they may encourage the Federal Reserve to continue raising interest rates.

As foreign capital flows to the area dry up and as regional central banks tighten policy to keep up with the Fed, rising interest rates are anticipated to put more pressure on Asian markets.

The FTSE 100 is set to start on Tuesday at a new intra-day high, though optimism may be muted ahead of some crucial economic data.

In the corporate news, TUI AG, Carrs Group PLC, and Coca-Cola HBC AG are set to provide trading updates.

Moreover, the U.S. dollar fell ahead of the most recent reading of consumer inflation in the US, while the yen rose following the appointment of the new governor of the Bank of Japan.

Prior to the publication of the most recent round of growth statistics for the area, the EUR/USD traded 0.2% higher.

Following the release of the most recent U.K. labour statistics, which revealed a decrease of approximately 13,000 in the claimant count in January, the pound increased 0.2% against the dollar. This suggests that the labour market is still strong despite the nation's economic challenges.

(Investing.com, Reuters.com)