- Florida braces for Milton, FEMA head slams 'dangerous' Helene misinformation
- Postecoglou slams 'unacceptable' Spurs after 'terrible' loss at Brighton
- Marmoush double denies Bayern outright Bundesliga top spot
- Rallies worldwide call for Gaza, Lebanon ceasefire
- New 'Joker' film, a dark musical, tops N.America box office
- Man Utd stalemate keeps Ten Hag in danger, Spurs rocked by Brighton
- Drowned by hurricane, remote N.Carolina towns now struggle for water
- Vikings hold off Jets in London to stay unbeaten
- Ahead of attack anniversary, Netanyahu says: 'We will win'
- West Indies cruise to T20 World Cup win over Scotland
- Man Utd fire another blank in Aston Villa stalemate
- Lewandowski treble powers Liga leaders Barca to Alaves victory
- Russian activist killed on front line in Ukraine
- Openda strike briefly sends Leipzig top of Bundesliga
- Goal-shy Man Utd have to 'step up', says Ten Hag
- India bowl out Bangladesh for 127 in T20 opener
- Madueke rescues Chelsea in draw with 10-man Forest
- Beckett's belief rewarded as Bluestocking storms to Arc glory
- Trump on the stump, Harris hits airwaves in razor-edge US election
- Flash flooding kills three in northern Thailand
- Kaur leads India to victory over Pakistan in Women's T20 World Cup
- Juventus held by Cagliari after late penalty drama
- In France's Marseille, teen 'stabbed 50 times' then burned alive
- Ruthless Gauff beats Muchova in straight sets to win China Open
- India restrict Pakistan to 105-8 in Women's T20 World Cup
- England target repeat of Pakistan Test whitewash
- Penrith Panthers win fourth straight NRL title after downing Storm
- Weary Sinner happy for day off after battling into Shanghai last 16
- Pakistan's Masood warns England still a force without Stokes
- Madrid's Carvajal to miss several months after serious knee injury
- Two elephants die in flash flooding in northern Thailand
- Sabalenka targets world number one and Wuhan hat-trick
- Tunisia votes with Saied set for re-election
- Bagnaia sets 'example' with Japan MotoGP win to cut gap on Martin
- Intense Israeli bombing rocks Beirut ahead of war anniversary
- Mozambique vote: no suspense but some disillusion
- Austrian rapper channels anti-racist rage in Romani hip-hop songs
- Ohtani magic powers Dodgers over Padres in MLB playoff thriller
- Five of the best: Pakistan-England Test thrillers
- Man sets arm on fire as marches across US mark Gaza war anniversary
- Vietnam's young coffee entrepreneurs brew up a revolution
- Trump rallies at site of failed assassination: 'Never quit'
- Too hot by day, Dubai's floodlit beaches are packed at night
- Is music finally reckoning with #MeToo?
- Fans hail Trump's 'guts' as he returns to site of rally shooting
- Lebanon state media says Israeli strikes hit south Beirut
- Miami on track for MLS record points after win in Toronto
- Monaco take top spot in Ligue 1 with win at Rennes
- Madrid beat Villarreal to level Liga leaders Barca
- Thuram treble fires Inter past Torino and up to second
Markets mixed as inflation, rate worries temper rally
Stock markets were mixed Tuesday as investors battled to maintain a global rally, with inflation still niggling over a pick-up in oil prices while a top Fed official pressed for a series of sharp rate hikes.
But optimism was boosted by data indicating an improvement in China's crucial manufacturing sector, helped by the easing of some strict Covid containment measures in major cities including Shanghai.
With Wall Street closed for a holiday, there were few catalysts to help extend the gains enjoyed in recent days, allowing inflation and borrowing costs to take centre stage.
Crude prices built on Monday's advance after the European Union reached a deal on a partial embargo of Russian imports as part of a punishment for its invasion of Ukraine.
Brent broke above $122 for the first time in two months and WTI sat around $117 as European chiefs said the latest sanctions would ban purchases of Russian oil delivered by sea, though there would be a temporary exemption for pipelines.
While widely expected, the agreement adds further upside to crude just as China begins to ease Covid restrictions in Shanghai and Beijing, raising the likelihood of a jump in demand from the world's number two economy.
The lift in oil prices will help fan already elevated inflation and pile further pressure on central banks to tighten monetary policy to prevent prices from running out of control.
In a sign of the struggle policymakers face, German prices are rising at their fastest pace ever while Spain's topped forecasts.
In the United States, the chances of an extended period of rate hikes were increased after Federal Reserve Governor Christopher Waller said he favoured half-point hikes "for several meetings" until inflation slows towards the bank's two percent target.
Waller added that his goal was in line with market expectations, which is about 2.75 percent in December.
President Joe Biden is due to hold talks with Fed boss Jerome Powell on Tuesday to discuss the inflation situation.
Jobs data on Friday will provide an update on the state of the US economy in light of soaring prices and rising rates.
- 'A big if' -
The prospect of a period of rates rising higher for longer lifted the dollar against the euro, pound and yen as well as other currencies.
In Asia, there was some much-needed cheer from data showing China's manufacturing shrunk in May at a slower rate than expected.
The Purchasing Managers' Index (PMI) -- a key gauge of manufacturing activity -- hit 49.6 last month, improving from April's 47.4, which was the worst reading since early 2020.
However, it remained below the 50-point mark separating growth from contraction and showed the Chinese economy was still struggling.
Jeffrey Halley at OANDA said: "A less worse than expected set of data has prompted a modest rally in China equities today, holding the promise of an accelerating recovery in June if the virus situation remains benign."
But he warned: "That's a big if."
Hong Kong and Shanghai rose more than one percent, while Seoul, Singapore, Taipei, Jakarta, Bangkok and Wellington also advanced.
Tokyo, Sydney, Mumbai and Manila fell.
London edged up but Paris and Frankfurt dipped.
AXA Investment Managers' Chris Iggo warned that another 10-15 percent retreat for stocks could still be a possibility.
"The mood is temporarily better in markets," he said, adding that "I think the worst is over for bond markets but picking the bottom in equities is trickier."
- Key figures at around 0810 GMT -
Tokyo - Nikkei 225: DOWN 0.3 percent at 27,279.80 (close)
Hong Kong - Hang Seng Index: UP 1.4 percent at 21,415.20 (close)
Shanghai - Composite: UP 1.2 percent at 3,186.43 (close)
London - FTSE 100: UP 0.2 percent at 7,618.02
Euro/dollar: DOWN at $1.0740 from $1.0779 on Monday
Pound/dollar: DOWN at $1.2616 from $1.2650
Euro/pound: DOWN at 85.13 pence from 85.21 pence
Dollar/yen: UP at 127.90 yen from 127.59 yen
Brent North Sea crude: UP 1.4 percent at $123.31 per barrel
West Texas Intermediate: UP 3.1 percent at $118.63
New York - Dow: Closed for a holiday
G.Machado--PC