Stocks Drop in Risk-Off Move Before Fed, Earnings – Asia Market Wrap

Asian markets slumped on rumours that investors are selling part of their holdings ahead of a slew of events in the coming days, including big central bank decisions, key economic data, and earnings from US megacap corporations.

The MSCI Asia Pacific Index fell 0.5% in July, marking its first monthly decrease since April. Hong Kong shares led the decline on Tuesday, tumbling more than 1% as optimism over the Chinese government’s stimulus measures faded. Australian and Japanese stocks also fell, as US equity futures edged down.

Prior to the Bank of Japan’s policy meeting on Wednesday, the yen remained near its highest level in 12 weeks. The dollar edged higher versus most of its main counterparts as traders braced for a Federal Reserve review on the same day. Treasuries were barely changed, poised for a third month of gains.