Asian stocks fall on Tuesday

Asian stocks fell on Tuesday while the dollar hovered near two-month lows, as investors turned cautious ahead of key US economic data that could shape expectations for Federal Reserve policy next year.

Nasdaq futures slid 0.8 per cent and European futures fell 0.5 per cent. Technology shares led regional losses, with South Korea’s KOSPI down 1.8 per cent, Taiwan’s benchmark index lower by 0.8 per cent, and Hong Kong’s Hang Seng tech index sliding 2.7 per cent. MSCI’s Asia Pacific shares outside Japan index dropped 1.45 per cent to a three-week low.

Markets are focused on combined US employment data for October and November due later on Tuesday, followed by inflation data on Thursday, although gaps remain after the prolonged government shutdown disrupted data collection.

Attention this week also turns to major central bank decisions, with the Bank of England expected to cut rates, the Bank of Japan likely to hike, and the European Central Bank widely seen holding rates steady.

In currency markets, the euro stood at $1.1751, near its highest since early October, while sterling eased to $1.3368. The dollar index was steady at 98.295, close to its lowest level in nearly two months, while the yen firmed to 155.07 per dollar ahead of the BOJ decision.

Bitcoin went down 0.3 per cent at $86,017.67 after hitting a two-week low.

Attribution: Reuters