The Chinese economy released its inflation data, which showed the acceleration of inflationary pressures growth, with the annual CPI reading showing the growth accelerating to 2.7% from 2.5% in the previous April reading, in line with expectations. while the annual reading of the PPI Showed a slow down in growth to 0.6% versus 0.6% in the previous April reading, in line with expectations.

Asian stocks opened the third session of the week on mixed performance, with the Japanese and the Chinese stocks falling in addition to Hong Kong's Hang Seng and South Korea's Kospi, while the Australian and New Zealand stocks rose on Wednesday, following data releases on China's inflation for the past month and on the threshold of an inflation data release for the US.

We have followed the Chinese economy reveal its inflation data, which showed a variance of inflationary pressures with the annual reading of the consumer price index showing growth accelerating to 2.7% in line with expectations compared to 2.5% in the previous annual reading for April, while the annual reading of the PPI showed that growth has slowed down to 0.6% which is also consistent with expectations versus 0.6% in the previous annual reading for April.

Last month China's inflation data showed the biggest rise in the consumer price index in 15 months, which could limit the chances that the central bank will ease monetary policy as inflationary pressures intensify, which has slowed the growth of the producer price index, the preliminary indicator of inflationary pressures may also later reflect the slowing growth of inflation in China.

In another context, Hong Kong's protests over China's controversial extradition bill have also pushed Hang Seng index lower. Investors are now looking for the release of inflation data for the United States, which may be reflected in the decisions and directions of the monetary policy makers at the Fed during Federal Open Market Committee meeting later in the week.

Japanese stock indices saw a variation in performance during today's trading session, with the broader Topix index falling by 0.09% to lose 1.38 points down to 1,559.94, while the main Nikkei 225 index rose 0.06% to win 13.22 points, up to the level of 21,217.50.

As for the Chinese stock indices, CSI 300 index fell by 0.44% to lose 16.48 points to 3,702.80, the Shanghai index fell 0.21% to lose 6.16 points to 2,919.56.

Hong Kong's Hang Seng Index shed 1.20% (334.23 points) to 27,455.11. South Korea's Kospi Index fell 0.15%, shedding 3.20 points to 2,108.61.

To the New Zealand NZX 50 index, which rose 0.07% (6.60 points) to 10,145.75. On the other hand, Australia's S&P/ASX 200 index gained 0.20% (13.01 points) to reach 6,559.30.

US stocks on Wall Street ended a near-stable session on Tuesday after a wave of gains that continued for six straight sessions, with little profit-taking activity, as investors assessed the developments in the US-China trade war.

Dow Jones industrial average fell down 14.17 points, or 0.05% to 26,048.51, Standard & Poor's 500 Index fell 1.01 points, or 0.03%, to 2,885.72. Nasdaq also shed 0.6 points, or 0.01% to 7,822.57 points.

Dow Jones rose 0.3% yesterday, and  S&P 500 gained 0.5%, its sixth daily gain in a row, among the longest daily gains since May 2018 as fears over the US-Mexico trade war eased.

US President Donald Trump said on Sunday that a 5% tariff on all Mexican imports to the United States is suspended indefinitely and added that he had full confidence in Mexico's ability to fight migration from Central America.

The Shanghai Composite Index rose 2.6% after China's Xinhua news agency said the country would allow local governments to use bonds to finance infrastructure projects.

Strong Wall Street gains also drew support from the growing prospects of the Fed to cut US interest rates this year.

According to the FedWatch tool of the CME, the market is pricing the possibility of a US interest rate cut of around 78% in July and about 97.1% for cuts by December.

Euro rose on Tuesday against a basket of world currencies to resume gains against US dollar, approaching the highest level in three months, following US President Donald Trump's attack on the European currency and other currencies.

As of 16:42 GMT, EUR/USD rose by 0.15% trading at $1.1327, from the opening price of $1.1310, with the highest at $1.1331 and the lowest at $1.1301.

Euro ended yesterday's trading 0.2% lower against the dollar, its first loss in three days, on correction and profit taking after the single European currency hit a three-month high of $1.1347 on Friday.

Euro also fell after two sources familiar with the ECB policy discussions said over the weekend that the bank was is to cut interest rates if the euro-zone economy stagnates again.

Euro gained 1.5% against the dollar last week, with the biggest weekly gain of the single European currency this year, after the ECB said interest rates would remain at their current levels until mid-2020 rather than hinting at cuts as expected in financial markets .

US President Donald Trump on Tuesday launched a series of attacks through his official twitter account on the single currency of the eurozone and again criticized the Fed's policy.

Trump tweeted that “The Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage,”

Trump criticized the rise in US interest rates and the policy of the Federal Reserve, saying “The Fed Interest rate way too high, added to ridiculous quantitative tightening! They don’t have a clue!”