Asia-Pacific markets decline as the Bank of Japan initiates its two-day policy meeting

Asia-Pacific markets dropped throughout the region on Tuesday as the Bank of Japan commenced its two-day monetary policy meeting.

 

The BOJ is anticipated to elevate its benchmark interest rate and reduce its Japanese government bond purchases. Economists surveyed by Reuters predict the bank will boost its benchmark interest rate to 0.1%, increasing from the present range of 0% to 0.1%.

 

Japan's Nikkei 225 made a late recovery, climbing 0.15% to 38,525.95, whereas the broad-based Topix fell 0.19% to close at 2,754.45. Japan's unemployment rate was slightly lower than expected in July, at 2.5% compared to the 2.6% predicted by a Reuters survey of economists.

 

South Korea's Kospi dropped 0.99% to finish at 2,738.19, while the small-cap Kosdaq experienced a smaller decline of 0.52%, closing at 803.78.

 

Australia's S&P/ASX 200 fell 0.46% and concluded at 7,953.2.

 

Heavyweight miner Fortescue dropped by as much as 10.27%, reaching a more than 20-month low after the Australian Financial Review reported that JPMorgan's equity capital markets team was seeking buyers for 1.9 billion Australian dollars ($1.2 billion) of discounted Fortescue stock on behalf of an unidentified institutional investor.

 

Hong Kong's Hang Seng index was down 1.43% in its final hour of trading, while mainland China's CSI 300 dropped 0.63%, extending its losses to 3,369.38 to reach new six-month lows.

 

In Hong Kong, shares of banking giant Standard Chartered increased by 4.84% after it announced its largest-ever buyback of $1.5 billion and upgraded its 2024 income forecast during its first-half results.

 

Overnight in the U.S., the three major indexes closed mixed, with the S&P 500 slightly higher as Wall Street prepared for a busy week of corporate earnings and anticipated a significant policy announcement from the U.S. central bank.

 

Economists do not expect the Fed to alter the federal funds rate during this meeting, but traders will seek hints on whether the central bank will reduce rates in September.

 

The broad market index gained 0.08%, and the Nasdaq Composite rose 0.07%. The Dow Jones Industrial Average declined 0.12%.