• Asia-Pacific markets remain lackluster amid major exchange holidays.
• The RBA beat expectations by boosting the benchmark rate to 0.35%.
• Treasury yields remain firmer around a multi-month high as traders brace for the FOMC.
• Headlines related to risk, US factory orders may entertain traders.

Stock markets in the Asia-Pacific region remain lackluster, despite falling slightly on firmer yields, amid the holidays in China, Japan and India on Tuesday. While depicting the mood, the MSCI Asia-Pacific ex-Japan equity index falls 0.17% as yields on benchmark U.S. Treasuries remain near three-year highs during bond markets inactive.

Even so, the Reserve Bank of Australia’s (RBA) higher-than-expected rate hike is challenging Australian investors and drowning the benchmark equity index, the ASX200. Following the RBA’s 0.25% rate hike, vs. 0.15% expected, the ASX 200 updated daily lows to extend yesterday’s losses towards the 7,300 level, down 0 .45% at press time.

Elsewhere, weaker New Zealand building permits prints for March, 5.8% vs. previously revised upwards of 12.8%, could not lift New Zealand stocks as the NZX 50 posted losses. intraday by 0.40% at the latest.

The reason could have to do with firmer yields across the board in anticipation of tighter monetary policies ahead.

Given the multiple market declines, coupled with a light calendar, investors will likely await the Fed’s verdict and may extend previous moves. For the middle directions, US factory orders for March, expected at 1.1% vs. -0.5% previously, can be examined.

Additionally, headlines from Russia and China will also be key, as Europe is ready to put more pressure on Moscow for its invasion of Ukraine, while Beijing has announced tough activity rules. during the festive season amid growing covid woes.

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