This is CNBC's live blog covering Asia-Pacific markets.
Asia-Pacific markets mostly slid on Tuesday as talks between U.S President Joe Biden and House Speaker Kevin McCarthy ended without a deal.
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House Speaker Kevin McCarthy said he had a "productive" and "professional" meeting, and said "I think the tone tonight was better than any other night we've had discussions," McCarthy said outside the West Wing following the hourlong meeting.
A private survey released Tuesday showed Japan's factory activity expanded in May for the first time since October 2022, while Singapore's April inflation hit a higher-than-expected 5.7%.
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In Japan, the Nikkei 225 closed 0.42% down at 30,957, snapping its seven day winning streak. The Topix ended 0.66% lower at 2,161.49. Both indexes erased earlier gains made in the day.
In Australia, the S&P/ASX 200 gained 0.1% to end at 7,270.8 as the country's composite purchasing managers index saw a softer expansion in May, according to Juno Bank.
South Korea's Kospi climbed 0.41%, finishing at 2,567.55 and the Kosdaq closed Tuesday 0.84% higher at 859.16.
Money Report
Hong Kong's Hang Seng index reversed earlier gains and to sink 1.27% to 19,428.08, its lowest closing levels since March 21, while mainland Chinese markets also traded lower. The Shanghai Composite closed down 1.52% at 3,246.24 while the Shenzhen Composite ended down 1.03% at 11,012.58.
Overnight in the U.S., the three major indexes ended the session mixed, with the Nasdaq Composite rising 0.5% and finishing at its highest close and highest intraday level since August.
Separately, the S&P 500 gained 0.02% on Monday, but the Dow Jones Industrial Average lost 0.42%.
— CNBC's Samantha Subin and Jesse Pound contributed to this report
Financials drag Shanghai Composite, ICBC tops losers on the index
The Shanghai Composite fell 1.52% on Tuesday, leading losses in Asia and dragged by financial stocks.
Refinitiv data showed banks led losses on the index, with the Industrial and Commercial Bank of China down by 2.76% and incurring the largest loss by index points.
Other top losers losses on the SSE included the A-share listings of China Life Insurance and the Agricultural Bank of China, which slid 4.13% and 3.05% respectively. The Bank of China also sank more than 3%.
This comes a day after China held its loan prime rates unchanged at 3.65%.
— Lim Hui Jie
Singapore April inflation hits 5.7%, higher than expected
Singapore's headline inflation rate rose to 5.7% in April, faster than the 5.5% recorded in March and surpassing expectations of 5.5% in a Reuters poll.
The Monetary Authority of Singapore said this was due to higher inflation for services and private transport.
The MAS core inflation measure, which excludes accommodation and private transport, came in at 5% in April, just as it did in March.
MAS expects core inflation measure to "stay elevated" in the next few months, before slowing in the second half of 2023 as imported inflation falls further and the current tightness in the domestic labor market eases.
— Lim Hui Jie
Chinese e-commerce market could grow to $3.3 trillion by 2025, says Commercetools
China's e-commerce market is growing at a pace that can't be ignored, said Dirk Hoerig, CEO of German cloud-based e-commerce solution Commercetools.
"I think what we can't ignore is that the Chinese e-commerce market is growing and [is estimated to be worth as much as $3.3 trillion] by 2025," said Hoerig.
His comments come as Commercetools looks to expanding into China despite geopolitical challenges. The customers are mostly European and U.S. brands and retailers and the Chinese market is critical to their business, he said.
"We're living in a volatile economy, the consumer demands are constantly increasing and that means the pace of change is not going to slow down," said Hoerig.
He added that overall spending for commerce technology is set to grow over 10% year over year within the next three years and "that gives us strong confidence looking forward."
— Sheila Chiang
New Zealand's central bank expected to raise rates by 25 basis points to 5.5%
New Zealand's central bank is expected to raise its benchmark policy rates to 5.5% when it meets Tuesday, according to a Reuters poll of 25 economists.
21 of the economists surveyed expected a hike, while the remainder expected a pause. In the same Reuters poll, the median expected rate hike is 25 basis points.
A rate hike Tuesday would be the Reserve Bank of New Zealand's 12th since October 2021.
The RBNZ previously surprised investors with a 50 basis points hike to 5.25% in March, when most economists had expected a raise of 25 basis points.
— Lim Hui Jie
South Korea's consumer sentiment rises to highest level in a year
South Korea's consumer sentiment has climbed in May to its highest level in a year. Data from the Bank of Korea showed a reading of 98, compared to 95.1 a month ago.
Inflation is expected to weaken to 3.5%, lower than the 3.7% the month before, the central bank said.
Reuters reported a BOK official as saying "It is too early to say inflation expectations are stabilising, with uncertainties remaining over public price increases and other factors."
— Lim Hui Jie
Japan's factory activity expands for the first time since October 2022: au Jibun bank
Japan's manufacturing sector recorded an expansion for the first time in seven months, according to flash estimates by the au Jibun Bank.
The manufacturing purchasing managers index came in at 50.8 in May, a reversal from the 49.5 recorded in April, "signalling the first improvement in operating conditions since October 2022," the report showed. A PMI reading above 50 indicates expansion, while a reading below that level indicates contraction.
The bank noted there were renewed increases in both output and new orders, with both variables rising at the strongest rate for 13 months. Manufacturers indicated that supply chain issues were showing signs of improvement.
Japan's services PMI was 56.3 in May, higher than the 55.4 seen in April and expanding at the strongest rate since the series began. Composite PMI climbed to 54.9, up from 52.9 in April.
— Lim Hui Jie
Hong Kong's inflation rate climbs to 2.1% in April
Hong Kong's inflation climbed 2.1% in April from a year earlier, slightly above the 2% expected by economists polled by Reuters. April inflation was also higher than the 1.7% recorded in March.
A spokesman for the city's government said that prices of energy-related items continued to increase sharply year-on-year, as well as costs of clothing and footwear.
The price of electricity, gas and water jumped 17.8%, while clothing and footwear prices climbed 6.4%.
The price of takeaway meals and eating out also rose 4.2%, while "price pressures on other major components remained broadly in check," the spokesman said.
Moving forward, Hong Kong expects that domestic price pressures may increase alongside the economic recovery. Overall inflation will likely pick up in the rest of 2023, but will remain "largely moderate".
— Lim Hui Jie
McCarthy sets high expectations for his debt ceiling meeting with Biden
House Speaker Kevin McCarthy, R-Calif., says "decisions have to be made" at his meeting on the debt ceiling with President Joe Biden, scheduled to begin at 5:30 p.m. ET.
"We've got to have movement" on pieces of an eventual a deal to raise the debt ceiling, McCarthy told reporters in the Capitol, adding "I know where I think people should be able to get to."
With only 10 days left until the earliest date Treasury Secretary Janet Yellen says the U.S. will risk default, Biden and McCarthy are under intense pressure to reach a compromise agreement. If and when they do, it will still require at least a week to turn their handshake deal into legislation and pass it through the House and Senate.
The House is currently scheduled to leave for Memorial Day recess this weekend, but McCarthy said he would postpone it if needed, in order to hold a vote to raise the debt ceiling. "We're going to stay and do our job," he said.
— Christina Wilkie
CNBC Pro: Asset manager reveals shorts position in these 4 global commercial property stocks
Shares of several global commercial property companies are set to decline further, according to chief investment officer Patrick Armstrong.
Armstrong, who manages equity strategy at wealth manager Plurimi, revealed that he is shorting four global commercial property companies.
"It's an expensive company, in my opinion, that's facing a pretty toxic environment," he said about one of his shorts.
CNBC Pro subscribers can read more here.
— Ganesh Rao
CNBC Pro: Fund manager shares tips on investing sustainably — and generating big returns
Philip Ripman manages the $1 billion Storebrand Global Solutions fund, with a focus on sustainability. But as well as green energy stocks, he also invests in chipmakers, cybersecurity stocks, pharmaceuticals and more.
His strategy appears to have paid off over the long term: his fund ranks top for 10-year annualized returns (15%) on Morningstar's list of global mega-cap equity funds.
Here are three tips on investing sustainably, including how to play the renewables theme, according to Ripman.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Kashkari calls potential for a June pause 'a close call'
Minneapolis Federal Reserve President Neel Kashkari noted Monday that a rate hike versus a pause in June is a "close call." He added, though, that even if the central bank does decide against another hike, it shouldn't be considered a sign about the future.
"Right now it's a close call either way ... If we were to skip in June, that does not mean we're done with our tightening cycle, it means to me we're getting more information," he said on CNBC's "Squawk Box."
He called the economy "robust" and noted that "we may have to go north of 6%" for the fed funds rate from the current target range of 5%-5.25% if inflation doesn't show more signs of coming down.
— Jeff Cox
Bitcoin and ether are on pace for their worst month of 2023
Cryptocurrencies were flat to start the week as movements in stocks and bond yields continued to push and pull on crypto prices.
Bitcoin was down 8.7% for May and on pace for its worst month since November, according to Coin Metrics. Ether was lower for the month by nearly 5% and heading for its worst month since December.
"Crypto continues to remain the best performing asset this year relative to gold, equities, bonds and DXY," said Bernstein analyst Gautam Chhugani said in a note Monday. "We continue to believe in our structural thesis on the 'new crypto cycle', but it is never a straight path up ... These dull markets, we believe, offer the best long-term risk rewards."
— Tanaya Macheel, Gina Francolla
Micron shares fall as China restricts sales
Shares of Micron Technology fell more than 3% amid news that China will restrict some sales of the memory chipmakers' products.
The country's Cyberspace Administration barred operators of "critical information infrastructure" from purchasing products from the company after Micron's products failed its network security review.
The firm poses a "major security risk" to China's critical information infrastructure supply chain and affects [its] national security," a statement said.
The news lifted Chinese chipmakers, including Hong Kong-listed Hua Hong Semiconductor and SMIC. Some chipmakers, including Qualcomm, Lam Research, Broadcom and Applied Materials were down nearly 1% each.
— Samantha Subin