Asian shares fell on Monday, consolidating gains after their best weekly run in five months, while investors looked ahead to China's rate decision and U.S. Federal Reserve Chair Jerome Powell's testimonies for clues on the path ahead.
FULL NOTE
The Nikkei index falls and the yen hits a 7-month low following the Bank of Japan's meeting.
🔹 China is predicted to decrease interest rates following lower-than-anticipated economic expansion.
The United States is observing a holiday and eagerly anticipating Powell's testimonies.
The BOE is planning to increase rates by 25bps this Thursday while the price of oil drops.
The European markets are expected to continue decreasing upon their opening, as pan-regional Euro Stoxx 50 futures have decreased by 0.7%. The Wall Street markets are closed due to the Juneteenth holiday, and Wall Street futures are mostly unchanged in Asia.
MSCI's broadest index of Asia-Pacific shares outside Japan slumped 0.8% on Monday, after hitting a four-month high the previous session and finishing up 3% for the week, the best since January.
On Friday, the Nikkei in Japan hit a 30-year high, but on Monday it fell by 1.3%. This followed the decision by the Bank of Japan (BOJ) to maintain its existing policy, which caused the yen to drop to a seven-month low compared to the U.S. dollar.
