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Asian stocks pause rally, eyeing China stimulus, Powell testimony

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Asian shares fell on Monday, consolidating gains after their best weekly run in five months, while investors looked ahead to China’s rate decision and U.S. Federal Reserve Chair Jerome Powell’s testimonies for clues on the path ahead.

FULL NOTE

🔹 Nikkei slides, yen at 7-mth low after BOJ meeting

🔹 China expected to cut rates after growth disappoints

🔹 U.S. closed for holiday, awaits Powell’s testimonies

🔹 BOE set to hike rates by 25bps on Thursday, oil slumps

Europe is set to extend the decline when markets there open, with pan-regional Euro Stoxx 50 futures down 0.7%. U.S. markets are closed for the Juneteenth holiday, with Wall Street futures mostly flat in Asia.

MSCI’s broadest index of Asia-Pacific shares outside Japan slumped 0.8% on Monday, after hitting a four-month high the previous session and finishing up 3% for the week, the best since January.

Japan’s Nikkei tumbled 1.3%, having clinched a three-decade top on Friday, buoyed by the Bank of Japan (BOJ) leaving its ultra-easy policy setting unchanged, which sent the yen to a 7-month low against the U.S. dollar

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