Asian Stocks Fall With Fed, BoJ Decisions Ahead – Asia Market Wrap

As traders anticipate this week’s decisions from the Federal Reserve and the Bank of Japan, Japanese stocks led a regional gauge lower.

The MSCI AC Asia Pacific Index dropped, with the Nikkei 225 falling as much as 2.1% even as benchmarks for Australia and Hong Kong climbed. After the S&P 500 increased by 0.1% and the Nasdaq 100 fell by 0.5%, US stock futures declined as investors withdrew from the tech megacaps that have driven the bull market.

Following a four-day fall, the dollar stabilised as traders increased their bets that the Fed would decrease interest rates by half a point on Wednesday. Although inflation has remained sticky, markets have been anticipating a decrease of anywhere from 25 to 50 basis points as US economic statistics have begun to worsen. Later on Tuesday, US retail sales could provide hints about the Fed’s impending decision. Treasury trade has not altered much.