Stock futures are lower Tuesday as rates rise: Live updates

Japan’s Nikkei 225 hit a fresh 33-year high Tuesday, driven mostly by tech stocks. The index scaled an intraday peak of 33,969.17, its highest level since March 1990.

Top gainers on the Nikkei were chip-related stocks, that tracked gains in U.S. peers Nvidia and Advanced Micro Devices.

Semiconductor company Tokyo Electron and chip equipment supplier Advantest climbed as much as 4.87% and 8.36%, respectively.

Video-game company Nintendo was also among the top performers, gaining as much as 4.7%, as news swirled that the company might release a new game console this year.

The headline inflation rate for Japan’s capital city of Tokyo slowed to 2.4% in December, from 2.6% in the month before.

Inflation rate has declined for a second straight month and is at its lowest level in 18 months.

Tokyo’s core inflation — which strips out prices of fresh food — remained unchanged at 2.1% in December, and came in line with expectations.

— Lim Hui Jie

Australia’s retail sales surged 2% in November compared with the previous month, beating expectations from economists polled by Reuters.

The 2% increase was sharply higher than the 1.2% gain expected by the Reuters poll, and also a reversal from the 0.2% fall in October.

“The strong rise suggests that consumers held back on discretionary spending in October to take advantage of discounts in November,” Robert Ewing, ABS head of business statistics at the Australian statistics bureau said.

“Shoppers may have also brought forward some Christmas spending that would usually happen in December,” he added.

— Lim Hui Jie

Federal Reserve Governor Michelle Bowman indicated that the central bank’s interest rate hikes are likely done – but she added that she’s not prepared to begin trimming. 

Bowman spoke at a community bankers conference in South Carolina on Monday, where she highlighted the Fed’s progress on reining in inflation through tight policy.

“Based on this progress, my view has evolved to consider the possibility that the rate of inflation could decline further with the policy rate held at the current level for some time,” she said in prepared remarks.

If inflation continues to decline toward the Fed’s stated 2% goal, Bowman noted “it will eventually become appropriate” to begin the process of dialing back rates.

However, the central bank still has work to do before cuts begin, she said. “In my view, we are not yet at that point,” Bowman added.

Read more about Bowman’s comments here.

–Darla Mercado, Jeff Cox

Check out the companies making headlines in after-hours trading.

• Unity Software — Unity Software shares jumped more than 3% after the maker of game engines used in the Angry Birds and Pokémon Go video games said it’s cutting 25% of its workforce, or about 1,800 workers.
• Microchip Technology — Microchip Technology shares dropped more than 3% after the microcontroller maker cut its fiscal third-quarter revenue forecast, citing a “weakening economic environment.” The company expects a 22% revenue decline in its third quarter, compared to prior guidance of a 15% and 20% drop.
• JetBlue Airways — JetBlue shares rose more than 1% after the company said President and Chief Operating Officer Joanna Geraghty will succeed Robin Hayes as CEO effective Feb. 12.

Read the full list here.

— Sarah Min