TOKYO: Asian stocks traded mostly lower on Monday as demand for riskier assets receded after recent strong gains and investors focused on the upcoming two-day policy meeting from the Federal Reserve later in the week. Japan’s benchmark Nikkei 225 fell 0.84% to 19,931, while the Topix index was down 0.81% at 1,617. Across the Korean strait, the Kospi was down 0.17%. In Australia, the ASX 200 slipped 1% to 5,666 with most sectors trading lower. In the Chinese mainland, the Shanghai composite bucked the generally downward trend to trade up 0.11% at 3,242. The Shenzhen composite was down 0.2%. In Hong Kong, the Hang Seng index traded up 0.46%. Ahead of the Fed’s meeting, most analysts don’t expect the US central bank to move on interest rates, but they said the market will look for clues on when the Fed will commence the process of balance sheet shrinkage. Increasing political uncertainty from the US White House contributed to another bout of dollar weakness, analysts said Monday, following on a rough close to last week for the greenback.
The dollar index extended its run of declines. It touched 93.839 early on Monday, it’s lowest level since June 2016, and was last dealing at 93.844, little changed from Friday’s close. The dollar retreated 0.2% to $110.89 yen in its fifth straight session of losses. In commodities, oil remained in the doldrums after a consultant forecast a rise in OPEC production for July despite the group’s pledge to curb output, reviving concerns about oversupply. Global benchmark Brent slipped 0.1% to $48.01 a barrel, after Friday’s 2.5% tumble. US crude fell 0.1% to $45.71, extending Friday’s 2.2% slump. Gold glittered on the dollar’s weakness and decline in risk appetite. Spot gold inched up 0.1% to $1,256.26 an ounce, building on Friday’s 0.8% jump, and slightly below a one-month high hit earlier.
