Bank of Japan Governor Kazuo Ueda delivers a speech at the start of issuance of new yen banknotes at the Bank of Japan headquarters in Tokyo on July 3, 2024.
Str | Afp | Getty Images
Asia-Pacific markets were set to open mixed on Wednesday as investors awaited the Bank of Japan’s rate decision and China’s business activity data.
Economists polled by Reuters expecting the bank to raise rates to 0.1%, though other analysts are expecting a larger hike. The BOJ’s benchmark interest rate currently is in a range of 0% to 0.1%.
Should the bank raise rates, this will mark the first time since 2010 that its benchmark interest rate stands firmly at 0.1% or higher.
Australia’s second-quarter inflation numbers are also in focus for clues on the Reserve Bank of Australia’s moves at its next monetary policy meeting on Aug. 6.
Futures for Australia’s S&P/ASX 200 stood at 7,943, slightly lower than their last close of 7,953.2
Japan’s 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 the HSI’s last close of 17,002.91.
Overnight in the U.S., the S&P 500 was dragged lower by declines in megacap tech stocks, as investors braced for quarterly reports from names in that cohort. Traders also set their eyes on Washington as the Federal Reserve began its latest policy meeting.
Nvidia shares pulled back by 7%, while Microsoft shed about 0.9%. Tech-related giants Amazon, Netflix and Meta Platforms also declined.
The broad market index lost 0.5%, while the Nasdaq Composite tumbled 1.28%. In contrast, the Dow Jones Industrial Average climbed 0.5%.
—CNBC’s Pia Singh and Yun Li contributed to this report.