Asian stocks retreated on Tuesday as investors braced for central bank policy meetings in the United States and Japan this week.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.3 percent, while Japan’s Nikkei .N225 slipped 1.1 percent.
Investors are cautious about buying riskier assets ahead of the U.S. Federal Reserve’s two-day policy meeting starting later on Tuesday.
A surprise drop in new U.S. home sales data for March published on Monday supported a view of anemic U.S. economic growth, which may keep the Fed from raising interest rates.
In fact, markets sees no chance of a rate increase at this week’s meeting and are pricing in just about a one in five chance of a move at the next meeting on June 14-15.
Yet, Fed officials have repeatedly said a hike in June is on the cards. Read more