Asia-Pacific markets traded lower, with greater Chinese markets leading losses in the region despite government’s pledges to stabilize the economy in 2023.
In Japan, the Nikkei 225 fell another 289.48 points, or 1.1%, to 27,237.69.
The Bank of Japan is expected to keep its interest rates steady at -0.10%, according to survey of economists by Reuters.
The rate decision is expected after the central bank’s two-day monetary policy concludes Tuesday.
Separately, Japan’s government and the BOJ are reportedly aiming revise a statement committing to a 2% inflation target at the earliest possible date, according to Kyodo News, citing government sources.
The Japanese yen strengthened against the U.S. dollar during Asia’s afternoon, and last stood at 135.95.
In Hong Kong, the Hang Seng lost 97.86 points, or 0.5%, to 19,352.81.
Demand for office spaces in Hong Kong has remained low as the city continues to grapple with high interest rates, said one real-estate expert.
Hong Kong’s central bank raised interest rates last Thursday by 50 basis points to 4.75%, moving in lockstep with the U.S. Federal Reserve.
CHINA
In Shanghai, the CSI 300 tumbled 61.01 points, or 1.5%, to 3,893.22, as the city announced it will shut most schools again Monday as the number of Covid cases surged.
Chinese officials vowed to stabilize its economy in 2023 and maintain ample liquidity in financial markets in order to meet key targets, according to a statement following the annual budget-setting Central Economic Work Conference last week, Reuters reported. The People’s
Bank of China is slated to set rates for its one and five-year Loan Prime Rates (LPR) on Tuesday.
Moreover, business sentiment in China fell to the lowest ever recorded by the World Economics Sales Managers Survey since the survey began in 2013.
The all-sectors index on business confidence in China fell to 48.1 in December, according to a survey conducted by the organization.
In other markets
In Taiwan, the Taiex stumbled 95.23 points, or 0.7%, to 14,433,32
In Korea, the Kospi index slid 7.85 points, or 0.3%, to 2,352,17.
In Singapore, the Straits Times Index recovered 15.8 points, or 1%, to 3,256.61.
In Australia, the ASX 200 gave up 14.81 points, or 0.2%, to 7,133.87
In New Zealand, the NZX 50 dropped 85.51 points, or 0.7%, to 11,518.14.
