Asian stocks edge lower with BOJ rate hike, Fed meeting on tap
Investing.com-- Most Asian stocks fell on Tuesday, with Japanese markets losing ground before a potentially historical policy shift from the Bank of Japan, while anticipation of a Federal Reserve meeting kept sentiment subdued.
Regional markets took little cheer from a positive overnight close on Wall Street, with U.S. stock index futures falling in Asian trade as a mild recovery in technology ran dry.
Anticipation of potentially hawkish signals from the Fed remained a key point of concern for markets. The bank is expected to keep rates unchanged on Wednesday.
Japan’s Nikkei 225 index fell 0.5%, while the broader TOPIX lost 0.2% as both indexes relinquished some gains from the prior session.
Markets were focused squarely on the conclusion of a two-day BOJ meeting later in the day, where the central bank is potentially set to raise interest rates for the first time in 17 years, while also ending its negative rates and yield curve control, marking an end to nearly a decade of ultra-loose monetary policy.
Bets on a BOJ pivot rose sharply in recent weeks amid sticky Japanese inflation, while major Japanese labor unions also won bumper wage hikes for the year.
The Nikkei had slid from record highs over the past week on fears of a BOJ pivot, which marks an end to the stimulus measures enjoyed by Japanese markets for nearly a year.
But analysts still expect the BOJ to only gradually tighten policy.
Other regional central bank meetings were also on tap. Australia’s ASX 200 was flat before a Reserve Bank of Australia decision, where the RBA is widely expected to keep rates steady and maintain a hawkish tilt.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell slightly as investors digested mixed economic
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