Asian shares stumble as investors brace for a central bank-packed week. Asian markets dipped, and the dollar held steady on Monday as investors anticipated a week of central bank meetings, including the Federal Reserve and the Bank of Japan, which will shape global monetary policy.

Nasdaq and S&P 500 futures rose 0.1% and 0.2%, respectively.

Australia’s resources-heavy share market (.AXJO) declined 0.7%, and Hong Kong’s Hang Seng index (.HSI) fell 0.7%. MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.5%.

Holidays close Japan’s Nikkei (.N225).

In the Asian morning, Chinese property developers listed in Hong Kong (.HSMPI) fell 2% because China Evergrande Group (3333. HK) fell 20% after southern Chinese police detained some staff at its wealth management unit, the latest trouble for the embattled property firm.

With exposure to Chinese property developers, Chinese trust firm Zhongrong International Trust Co. said it could not pay several trust products on time over the weekend.

Asian sentiment improved this week after Beijing provided further policy support, and better-than-expected Chinese statistics suggested the world’s second-largest economy stabilized following a months-long slump.

“Despite encouraging signs of stabilization, the property market remains the missing puzzle piece in the economic picture,” said OCBC Bank Greater China Research director Tommy Xie.
“The on-the-ground input indicates a boost in property viewing activity, but most prospective buyers are not in a hurry to close purchases due to the increased supply of flats post-relax

Five of the ten most deeply traded currencies’ central banks, including the U.S. Federal Reserve, will set rates this week and several emerging market ones.

Markets completely price in a Fed pause on Wednesday, concentrating on revised economic and rates estimates and Chair Jerome Powell’s outlook. Expect an 80 bps decrease next year.

“The FOMC meeting should be low-volatility, but it is a risk that must be managed,” said Pepperstone research head Chris Weston.

“The median 2023 fed funds rate projection should stay at 5.6%, allowing the bank to hike in November if data warrants it.”

Weston added that if the Fed improves its 2024 rate predictions, rate cuts will be priced out, strengthening the dollar and reducing global shares.

The Bank of England is expected to raise rates for the 15th time on Thursday, taking benchmark borrowing prices to 5.5%. Sweden’s Riksbank will raise rates by 25 basis points to 4%.

Bank of Japan is Friday’s biggest danger. After recent comments by Governor Kazuo Ueda drove rates higher, markets are seeking signals that the BOJ may be moving away from its ultra-loose policy faster than expected.

U.S. industrial labor action hurt auto shares, sending Wall Street down last Friday. High Treasury yields hit Amazon (AMZN.O) and other mega-cap growth businesses.

Cash Tokyo’s closure prevented Asian Treasuries trading. Treasury yields rose on Friday, with the two-year topping 5%, as futures priced in further rate increases ahead of the Fed’s meetings this week.

The U.S. dollar held a six-month high of 105.29 against a basket of major currencies.

The euro rose 0.1% to $1.0673 in early Asia trade after falling to a 3-1/2 month low of $1.0629 last week as the European Central Bank signaled a possible rate rise halt.

After hitting 10-month highs last Friday, oil prices rose, boosting inflation. Brent crude prices increased 0.3% to $94.20 and WTI 0.4% to $91.14.
Gold rose 0.2% to $1,925.62.