Asia-Pacific markets tumble on Tuesday

Asia-Pacific markets declined on Tuesday as the Bank of Japan (BOJ) began its two-day monetary policy meeting.

The BOJ is anticipated to raise its benchmark interest rate and reduce its Japanese government bond purchases when the meeting concludes on Wednesday.

Economists surveyed by Reuters predict the BOJ will raise its benchmark interest rate to 0.1 per cent from the current range of zero per cent to 0.1 per cent.

Japan’s Nikkei 225 index fell by 0.7 per cent, while the broader Topix index dropped 0.65 per cent. The country’s unemployment rate came in slightly lower than expected at 2.5 per cent in July, compared to the forecast of 2.6 per cent.

South Korea’s Kospi index declined by 0.9 per cent, and the small-cap Kosdaq index lost 0.7 per cent.

Australia’s S&P/ASX 200 index dropped 0.92 per cent, with heavyweight miner Fortescue plummeting by as much as 9.23 per cent after reports of potential discounted stock sales.

Hong Kong’s Hang Seng index shed 0.8 per cent, while mainland China’s CSI 300 index extended losses from the previous day’s six-month low, posting a marginal decline.

Overnight in the US, the stock market closed mixed. The S&P 500 index edged higher, supported by anticipation of a busy earnings season and the upcoming Federal Reserve policy announcement.A

While economists expect the Fed to maintain interest rates this week, investors will be closely watching for clues about potential rate cuts in September.

The Nasdaq Composite gained 0.07 per cent, while the Dow Jones Industrial Average slipped 0.12 per cent.

Attribution: CNBC