Asia-Pacific markets fell across the board as traders parsed minutes from the Reserve Bank of Australia for its policy meeting on Sept. 5 where the bank had said that inflation in the country is still “too high.”
Markets in Japan returned to work Tuesday after a long weekend, with the Nikkei 225 collapsing 290.50 points, or 0.9%, to 33,242.59.
In Hong Kong, the Hang Seng index recovered 66.62 points, or 0.4%, to 17,997.17.
Australia’s central bank is still of the position that inflation in the country is “too high,” but opted to hold its benchmark policy rate at 4.1% in its last meeting.
Minutes from the Reserve Bank of Australia revealed that the board debated between raising rates by 25 basis points, or leaving it unchanged.
In the end, the case for leaving the rate unchanged was the stronger one, with the RBA saying “the recent flow of data was consistent with inflation returning to target within a reasonable timeframe while the cash rate remained at its present level.”
The bank also added that more time should be allowed to see the effects of monetary policy tightening since May 2022.
However, the RBA also said that some further tightening in policy may be required, should inflation prove more persistent than expected.
In other markets
The CSI 300 backpedaled 7.21 points, or 0.2%, to 3,720.50
In Taiwan, the Taiex index staggered 61.92 points, or 0.4%, to 16,636.32.
In Singapore, the Straits Times settled 22.64 points, or 0.7%, to 3,240.75.
In Korea, the Kospi index moved lower 15.51 points, or 0.6%, to 2,559.21.
In New Zealand, the NZX 50 settled 52.48 points, or 0.5%, to 11,344.52.
In Australia, the ASX 200 fell 33.75 points, or 0.5%, to 7,196.63.