Asian stocks were mostly lower on Tuesday as investors awaited central bank decisions in Japan and Australia.
Neither the Bank of Japan (BOJ) nor the Reserve Bank of Australia (RBA) is expected to take action at their respective policy reviews, so attention will likely fall on their policy statements. Investors may watch if BOJ governor Kuroda emphasizes a more flexible time frame for achieving its inflation goal, while the RBA will be watched for any comments about the housing market and sliding commodity prices.
Dollar Weakens
A weaker U.S. dollar also featured in Asia’s trading session. Profit-taking brought the greenback’s rally to a halt overnight, with the dollar index dropping nearly 1 percent after rallying for 12 straight weeks, its longest stretch in more than four decades.
Central banks also weighed on U.S. trade. Stocks fell on Monday as investors adopted a cautious approach before the release of minutes from the Federal Reserve’s last meeting on Wednesday, with the bank on track to conclude bond purchases this month.
Japan’s benchmark Nikkei index retreated after rallying over 1 percent on Monday. The yen traded in sight of the 109 handle against the dollar, which helped to limit losses on the index.
Australia’s benchmark S&P ASX 200 fell to a one-week low, while the Australian dollar traded in sight of 88 U.S. cents, well off a four-year low hit last week. South Korean shares rose following the previous session’s modest declines thanks to a rally in shares of Samsung Electronics.
