Asia-Pacific markets decline as Bank of Japan meeting commences

South Korea's Kospi fell 0.9%, and the small-cap Kosdaq experienced a smaller loss of 0.7%.

Asia-Pacific markets fell across the region on Tuesday as the Bank of Japan (BOJ) kicked off its two-day monetary policy meeting. The meeting, set to conclude on Wednesday, is expected to result in a benchmark interest rate hike and a reduction in Japanese government bond purchases. According to a Reuters poll, economists anticipate the BOJ will increase its benchmark interest rate to 0.1%, up from the current range of 0% to 0.1%.

Market Movements

In Japan, the Nikkei 225 slid 0.7%, while the broad-based Topix declined 0.65%. Japan's unemployment rate for July came in slightly lower than expected at 2.5%, compared to the 2.6% forecast by economists polled by Reuters.

South Korea's Kospi fell 0.9%, and the small-cap Kosdaq experienced a smaller loss of 0.7%.

Australia's S&P/ASX 200 dropped 0.92%. Heavyweight miner Fortescue tumbled by as much as 9.23% following a report from the Australian Financial Review that JPMorgan's equity capital markets team was seeking buyers for 1.9 billion Australian dollars ($1.2 billion) of discounted Fortescue stock on behalf of an undisclosed institutional investor.

Hong Kong's Hang Seng index lost 0.8%, while mainland China's CSI 300 slipped marginally, extending its losses after closing at its lowest level in almost six months on Monday.