Asian markets mostly dip as US, Japan bank meetings eyed
AFP
AFP, HONG KONG: Asian markets mostly dipped yesterday on investor caution before Federal Reserve and Bank of Japan policy meetings later in the week, while oil prices rallied after the previous days sharp losses
Having piled up healthy gains last week, traders took a step back before the Fed meeting which they hope will provide some forward guidance on its policy plans, while the corporate earnings season also kicks off.
Overall were in wait-and-see mode, Toshihiko Matsuno, chief strategist at SMBC Friend Securities Co. in Tokyo, told Bloomberg News.
Its easier for investors to lighten their positions so damage will be limited in case something unexpected happens in US and Japanese monetary policy.
After the turmoil across world markets at the start of the year, the Fed has lowered expectations of rate rises this year -- saying it would closely watch overseas developments before moving.
Traders have predicted the next rise will be towards the end of the year but every utterance from the bank will be pored over for clues about its thinking.
Japans Nikkei index ended 0.5 per cent lower, with the yen holding Mondays gains against the dollar despite speculation the countrys central bank will ramp up its stimulus when a two-day policy meeting ends Thursday.
The dollar was at 110.96 yen, having pushed towards 112 yen at the end of last week on speculation the Bank of Japan would unveil fresh measures.
The BoJ has been tipped to further ease monetary policy after this months double earthquake in the south which caused factory closures at a time when the economy is already stuttering.
Wednesday sees the start of the earnings season, with Sony and Nintendo among a slate of big-name firms set this week to report results for the fiscal year through March.
Among other markets Sydney lost 0.3 per cent while Singapore shed 0.8 per cent and Wellington lost more than one percent.
