Asian Stocks Decline Amid Bank of Japan Meeting Anticipation

Summary:
Asian stocks experienced a decline, heavily influenced by Japanese shares, as investors awaited the Bank of Japan’s (BOJ) policy meeting outcome. The Nikkei and Topix indices dropped, while the yen remained stable around 157.10 per dollar. The BOJ is expected to maintain its benchmark rate between 0 and 0.1% and may signal a potential interest rate hike next month. Chinese stocks are facing challenges such as subpar growth and trade tensions.
Australian shares fell, and Hong Kong and mainland China futures indicated losses. In the US, the S&P 500 maintained a steady performance after achieving a record, driven by gains in tech stocks. Broadcom Inc. led a rally in chipmakers, while Adobe Inc. and Tesla Inc. saw significant gains.
US treasury yields declined due to easing inflation pressures, potentially opening the door for the Federal Reserve to consider rate cuts later this year. JPMorgan predicts a strong continuation for the US stock market into 2024, recommending large-cap and a mix of value and growth stocks.
European Union bonds faced setbacks, and political risks in France widened the premium on its 10-year bonds. Oil prices fell, while gold held steady. Key events to watch include the BOJ’s policy decision and US consumer sentiment data.
Market Movements:

• S&P 500 futures: little changed.
• Hang Seng futures: fell 0.7%.
• Japan’s Topix: little changed.
• Australia’s S&P/ASX 200: fell 0.1%.
• Euro Stoxx 50 futures: fell 2.1%.
  Currencies:
• Bloomberg Dollar Spot Index: little changed.
• Euro: unchanged at $1.0737.
• Japanese yen: little changed at 157.11 per dollar.
• Offshore yuan: little changed at 7.2712 per dollar.
  Cryptocurrencies:
• Bitcoin: rose 0.1% to $66,749.63.
• Ether: fell 0.2% to $3,470.4.