On May 14, most Asian stock markets remained within narrow ranges as investors awaited crucial US inflation data, while the Chinese market fell due to another major property developer defaulting on bond payments. Ahead of the inflation data releases on Tuesday and Wednesday, regional markets lacked clear direction from Wall Street, with traders staying cautious on any significant bets.

In Asian trading, US stock index futures remained within a range. The Chinese stock market slowed down, exacerbated by defaults in the real estate sector. The Shanghai Shenzhen 300 Index and the Shanghai Composite Index each fell by about 0.3% from their 2024 highs. The decline was primarily driven by drops in real estate market stocks.

Country Garden Holdings Co., Ltd. (stock code: 3383) was at the center of the decline. The Hong Kong-listed shares of this property developer fell by around 15% after announcing failure to make interest payments on Monday. The company also saw a significant drop in sales in the first four months of 2024, indicating no relief from the downturn in the real estate market.

Concerns about further declines in real estate stocks kept the Hang Seng Index steady, but tech giants such as Baidu Inc. (NASDAQ: BIDU) (stock code: 9888), Alibaba Group Holding Limited (stock code: 9988) (NYSE: BABA), and Tencent Holdings Limited (stock code: 0700) rose ahead of their quarterly earnings releases this week.

There have been recent reports that the Biden administration is considering imposing additional tariffs on China, keeping market sentiment towards China tense.

Ahead of the release of US inflation data, other Asian markets were relatively calm. Other Asian stock markets were flat, with investors continuing to focus on the upcoming US inflation data, which is expected to impact interest rates.

The Nikkei 225 Index in Japan rose by 0.1%, boosted by over 2% gains in tech giant SoftBank Group Corp. (stock code: 9984), which turned a profit in the fourth quarter. The company also significantly reduced its losses for the fiscal year 2024 compared to the previous year.

Data released on Tuesday showed that Japan's April Producer Price Index inflation rate met expectations. The Australia ASX 200 Index fell by 0.3%, while the South Korean KOSPI Index remained unchanged. Futures for the Indonesia 50 Index indicated a stable opening, with investors remaining cautious on the Indian market ahead of the 2024 parliamentary elections.

However, the upcoming US inflation report has drawn the most attention in Asian markets. The Producer Price Index inflation rate is expected to be announced on Tuesday, with the more closely watched Consumer Price Index data set for release on Wednesday.

Any evidence of sustained inflation could reduce expectations of Federal Reserve rate cuts and trigger market volatility. The inflation rate is also expected to be well above the Fed's annual target rate of 2%, leaving little incentive for the central bank to immediately start cutting rates.