ASIA OUTLOOK: Regional stock markets are likely to trade cautiously Tuesday after weak U.S. factory orders led stocks on Wall Street to a mixed close Monday and ahead of a few key central bank meetings this week. While uncertainty over the global economy stemming from poor U.S. and Chinese economic data last week and concerns over Greece and Spain continue to play on investors' minds, any downside will likely be limited after many regional markets set fresh multi-month lows Monday, with Hong Kong's benchmark index erasing its gains for the year. In FX markets the EUR may be supported after optimism for further measures to ease stresses in the euro zone ahead of upcoming talks between global finance ministers and this week's ECB meeting lifted the single currency against the greenback Monday. The RBA's rate decision will be in focus later. According to a Dow Jones poll the central bank is widely expected to cut rates by 25 bps Tuesday, though some economists are predicting a 50 bp rate cut while a small minority expects the RBA to keep rates on hold. The EUR/USD is at 1.2500 from 1.2502 late Monday in New York, the EUR/JPY is at 97.94 from 97.93, and the USD/JPY is at 78.35 from 78.35. The AUD/USD is at 0.9729 from 0.9660 late Monday in Sydney. On the data slate there's Taiwan's May CPI at 0030 GMT, the Philippines' May CPI at 0100 GMT, Australia's 1Q balance of payments at 0130 GMT, Hong Kong's May whole economy PMI at 0230 GMT, the RBA's rate decision at 0430 GMT and Singapore's May PMI at 1330 GMT. In the U.S. there's the May ISM non-manufacturing report, while St. Louis Fed President Bullard and Chicago Fed President Evans are scheduled to speak. Markets in the U.K. are shut for a holiday.
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