SINGAPORE — Stocks in Australia fell in early trade on Tuesday, ahead of a rate decision by the country’s central bank.
Australia’s S&P/ASX 200 was down 0.39% as banks and major miners fell. The Commonwealth Bank of Australia declined over 1% and miners Fortescue was down 1.34%.
Economic data in the day ahead includes Australia’s interest rate decision, which will be significant as analysts widely expect the first rate hike in more than a decade.
Australia’s central bank is expected to raise its official cash rate by 15 basis points to 0.25%, according to the median forecast of a Reuters poll of 32 economists.
Ahead of the decision, the Australian dollar rose to $0.7065, from levels around $0.704 earlier.
After the much-stronger-than-expected Q1 inflation report, we expect the first in a series of hikes from the [Reserve Bank of Australia] today.
Brian Martin and Daniel Hynes
ANZ Research analysts
“After the much-stronger-than-expected Q1 inflation report, we expect the first in a series of hikes from the [Reserve Bank of Australia] today. The breadth and momentum of inflation in the Q1 [consumer price index] report strongly suggests that the RBA won’t wait for data on wages,” ANZ Research analysts Brian Martin and Daniel Hynes wrote in a note.
“This will be the first time the RBA has increased rates since November 2010,” they added.
Over in South Korea, the Kospi traded just above the flatline. MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed.
Several markets are closed in the region for holidays, including China, Japan, Singapore and India. Hong Kong will return to trade from a holiday on Monday.
Over in Europe, shares in the region abruptly fell on Monday, driven by a brief crash in Swedish markets. It was caused by a single sell order trade from Citigroup, reportedly tied to a wrong calculation relating to a Nasdaq index that involved Swedish stocks.
In U.S. stocks, the S&P 500 and Nasdaq Composite hit new lows for the year before closing in positive territory for the day.
The Nasdaq Composite rose 1.63% to 12,536.02, while the S&P 500 rose 0.57% to 4,155.38. The Dow Jones Industrial Average gained 84.29 points, or 0.26%, to close at 33,061.50. The Dow was down more than 500 points at its session lows.
Currencies and oil
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 103.539, falling from levels around 103.7 earlier.
The Japanese yen traded at 130.08 per dollar, as it stayed at levels weaker than 129.
Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures up 0.47% to $108.09 per barrel. U.S. crude futures rose 0.38% to $105.57 per barrel.
Read More: Australian markets decline ahead of closely watched interest rate decision