Stocks in Asia Pacific were set to trade mixed on Tuesday as investors await developments from U.S.-China trade talks this week in Shanghai as well as monetary policy decisions from major central banks.
Futures pointed to a higher open for Japanese shares, with the Nikkei futures contract in Chicago at 21,660, as compared to the Nikkei 225’s last close at 21,616.80.
Stocks in Australia, on the other hand, were poised to slip. The SPI futures contract was at 6,792.0, as compared to the S&P/ASX 200’s last close at 6,825.80.
Investors will be watching for the Bank of Japan’s announcement of its decision on interest rates at 11:00 a.m. HK/SIN on Tuesday, after the European Central Bank last week signaled a potential rate cut and more monetary easing ahead.
“The BoJ is widely expected to make no monetary policy changes and reiterate its ‘powerful monetary easing’ stance,” Richard Grace, chief currency strategist and head of international economics at Commonwealth Bank of Australia, wrote in a morning note.
The risk that the Japanese central bank introduces more aggressive easing measures, however, “cannot be ruled out,” Grace said. This could result in a “headwind” for the Japanese yen. The currency last traded at 108.84 against the dollar after weakening from levels below 108.5 yesterday.
Asia-Pacific Market Indexes Chart
Overnight stateside, the Dow Jones Industrial Average rose 28.90 points to close at 27,221.35. while the Nasdaq Composite fell 0.44% to end its trading day at 8,293.3. The S&P 500 slipped 0.16% to close at 3,020.97.
Meanwhile, U.S.-China trade negotiations are set to happen in Shanghai this week as the two economic powerhouses seek to reach a deal to end a protracted trade dispute.
Investors also await the U.S. Federal Reserve’s decision on interest rates, set to be announced on Wednesday stateside. The central bank is widely expected to cut its benchmark lending rate for the first time since 2008 by 25 basis points.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.044 after rising from levels below 98.0 yesterday.
The Australian dollar changed hands at $0.6900 following declines from levels above $0.702 seen last week.
Here’s a look at what’s coming up ahead today:
- Japan interest rate decision at 11:00 a.m. HK/SIN
- China: First half financial statements for Huawei
- South Korea: Samsung SDI, LG Electronics earnings
- Hong Kong: Hang Lung Group, Hang Lung Properties, IMAX China earnings
- Japan: Sony, ANA Holdings, Mitsubishi Electric, SMFG, Nintendo earnings
— CNBC’s Thomas Franck contributed to this report.
