Bank of Japan Governor Kazuo Ueda delivers a speech at the start of the issuance of new yen money at the Bank of Japan headquarters in Tokyo on July 3, 2024.
Str Afp | Getty Images
Asia-Pacific markets are set for a mixed open on Wednesday as investors await the Bank of Japan’s rate decision and China’s business activity data.
Economists polled by Reuters expected the bank to raise rates by 0.1%, although other analysts expected a bigger increase. The BOJ’s benchmark interest rate is currently in the range of 0% to 0.1%.
If the bank raises rates, it will mark the first time since 2010 that the benchmark interest rate has remained at 0.1% or higher.
Australia’s second-quarter inflation numbers are also the focus for clues about the Reserve Bank of Australia’s next monetary policy meeting on August 6.
Futures for Australia’s S&P/ASX 200 were at 7,943, slightly lower than their last close of 7,953.2
Japan Nikkei 225 futures pointed to a weaker open for the market, with the futures contract in Chicago at 38,155 and its counterpart in Osaka at 38,000 compared to the previous close of 38,525.95.
Hong Kong Hang Seng Index futures were at 17,046, higher than HSI’s last close of 17,002.91.
Overnight in the US, the S&P 500 was dragged down by a decline in megacap technology stocks, as investors cheered the monthly reports from names in the group. Traders also set their eyes on Washington as the Federal Reserve begins its latest policy meeting.
Nvidia shares pulled back 7%, while Microsoft shed about 0.9%. Tech giants Amazon, Netflix and Meta Platforms also declined.
The broad market index lost 0.5%, while the Nasdaq Composite fell 1.28%. In contrast, the Dow Jones Industrial Average rose 0.5%.
—CNBC’s Pia Singh and Yun Li contributed to this report.
