Japanese shares fell on Tuesday along with regional markets, while the yen was steady heading into a pivotal Bank of Japan meeting that could end eight years...
A passerby walks past an electric screen displaying Japan's Nikkei share average and the Dow Jones Industrial Average in TokyoSINGAPORE - Japanese shares fell on Tuesday along with regional markets, while the yen was steady heading into a pivotal Bank of Japan meeting that could end eight years of negative interest rates and usher in the nation's first policy tightening since 2007.
"The focus of today’s meeting should not be on the rate decision itself but on its forward guidance," ING economists said in a note. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7%. China stocks fell, with Hong Kong's Hang Seng index down over 1%, while the blue-chip shares eased 0.3%.Investors are also awaiting policy decision from Australia's central bank later on Tuesday. The Reserve Bank of Australia is widely expected to hold rates steady with the focus on whether policymakers decide to further water down its tightening bias.
Last week's stronger than expected inflation reports led traders to reduce their bets of rate cuts this year, with markets pricing in 71 basis points of easing this year. At the start of the year, traders were pricing in 150 bps of cuts.
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