Stocks floundered Tuesday as several markets enjoyed the day off but as investors took in what were deemed "dovish" moves by Australia’s central bank.
The Nikkei 225 in Japan faded 172.98 points, or 0.9%, to 18,810.25, as stocks came under pressure from a stronger yen.
Automakers, in particular, appeared to have been under pressure, as shares of Toyota declined 1%, Nissan was down 2.9% and Honda fell 2.7%
Meanwhile, Toshiba shares dropped 9.4%. On Monday, media reports emerged, saying the troubled Japanese conglomerate would likely miss a third deadline to report its quarterly business results.
The Australian dollar slipped Tuesday afternoon as the Reserve Bank of Australia (RBA) rhetoric appeared slightly dovish, while equities around the region struggled.
The RBA kept its cash rate unchanged at a record low of 1.5%, noting recent economic data were consistent with moderate growth, but citing concerns over a softer labour market. The central bank also noted that regulators had moved to reinforce lending standards, indicating the RBA may be less concerned about rising home prices.
Analysts said the statement was read as slightly dovish.
The Australian dollar fell as low as $0.7559 against the U.S. dollar following the RBA's decision, from levels above $0.76 earlier in the session.
Australian stock markets sank, with most sectors trading lower.
The heavily-weighted financial sub-index was down 0.7% as shares of major Australian banks slipped. ANZ declined 0.4%, while the Commonwealth Bank fell 0.5%, Westpac was down 1% and the National Australia Bank shed 0.9%
Investors this week will also be casting an eye toward the meeting between Chinese President Xi Jinping and President Donald Trump on Thursday where the two leaders will have no shortage of weighty issues to discuss — including trade and North Korea among others.
Markets in Hong Kong, Shanghai and Taiwan were shuttered for holidays
In other markets
The Kospi Index in Korea faded 6.41 points, or 0.3%, to 2,161.10
In Singapore, the Straits Times Index fell 8.45 points, or 0.3%, to 3,179.06
In New Zealand, the NZX 50 gained 19.52 points, or 0.3%, to 7,244.54
In Australia, the S&P/ASX 200 settled 16.13 points, or 0.3%, to 5,856.55
