Tuesday, 31 July 2018
Asian share markets weakened on Tuesday, taking cues from the rout in global technology shares while the yen edged higher ahead of the Bank of Japan’s rate review, at which it could flag a shift away from its massive monetary stimulus.
Japan’s Nikkei fell 0.5 percent. South Korea’s Kospi index dipped 0.1 percent. Overnight in Wall Street, the Dow and the S&P 500 each lost 0.6 percent and the Nasdaq skidded 1.4 percent.
Japan’s central bank will likely consider taking steps to make its massive stimulus program more sustainable, such as allowing greater swings in interest rates and widening its stock-buying selection, according to sources..
Elsewhere, most major currencies stuck to narrow trading ranges ahead of several central bank decisions. The U.S. Federal Reserve concludes its policy meeting on Wednesday and the Bank of England is seen raising interest rates on Thursday. Month-end macroeconomic data is also due from China on Wednesday.
The yield on the benchmark 10-year Treasury note rose to its highest level in over one month — just under 3 percent — as Wall Street awaited decisions on monetary policy from Federal Reserve and the Bank of Japan. The yield on the 10-year Treasury note hit 2.99 percent
The dollar index, which measures the greenback against a basket of major currencies, was flat at 94.332. The People’s Bank of China (PBOC) sets the Yuan reference rate at 6.8165 vs the previous day’s fix of 6.8131.
In commodities, U.S. crude eased 3 cents to $70.10 a barrel after a sharp rally overnight while Brent settled up 68 cents at $74.97.
Source : Reuters
