Bank of Japan's Monetary Policy Meeting Sparks Market Reactions

The Bank of Japan commenced a two-day monetary policy meeting on Tuesday, drawing significant attention from traders eager for insights on potential changes to benchmark interest rates and the bond-buying program. Economists surveyed by Reuters anticipate an increase in the benchmark interest rate to 0.1%, up from the current range of 0% to 0.1%. This meeting coincides with the release of Japan's unemployment rate for July, which was reported at 2.5%, slightly better than the 2.6% forecast. As the Bank of Japan convened, Asia-Pacific markets experienced declines. South Korea's Kospi index fell by 0.99%, closing at 2,738.19, while the Kosdaq saw a smaller decrease of 0.52%, ending at 803.78. The Hong Kong Hang Seng index dropped 1.43%, and mainland China's CSI 300 index fell 0.63%, reaching new six-month lows at 3,369.38. In contrast, Hong Kong's banking giant Standard Chartered saw its shares rise by 4.84% after announcing a record $1.5 billion buyback and upgrading its income guidance for 2024 during its first-half results. Meanwhile, in the U.S., major stock indexes closed mixed, with the S&P 500 gaining 0.08% and the Nasdaq Composite rising 0.07%. The Dow Jones Industrial Average, however, slipped by 0.12%. Investors are preparing for a busy week of corporate earnings and a significant policy announcement from the U.S. central bank.