Central Bank Meetings Jolt Markets Amid Political Upheavals and Economic Shifts

Asian markets fluctuated while the dollar remained steady as traders awaited central bank decisions, including a potential U.S. Federal Reserve rate cut. Meanwhile, Bitcoin edged close to record highs amid favorable U.S. regulatory expectations. South Korea's markets continued to struggle due to political instability.

Asian stocks experienced fluctuations on Tuesday as the dollar remained stable, with traders eyeing a series of central bank meetings this week. Notably, the U.S. Federal Reserve is anticipated to cut rates, while the Bank of Japan might hold steady. Bitcoin hovered near its record high, driven by positive regulatory expectations following the U.S. elections.

The cryptocurrency market has surged since early November, driven by hopes of a cryptocurrency-friendly Trump administration. In stock markets, Australian shares rose by 0.82%, Japan's Nikkei dipped 0.15%, and Taiwan's tech-heavy stocks saw a 0.3% increase. MSCI's Asia-Pacific index outside Japan dropped by 0.3% but is still on track for a 10% annual gain, its best performance since 2020.

Data indicating a slowdown in China's consumption dragged stocks down, with Hong Kong's Hang Seng Index falling 0.6%, and mainland stocks declining by 0.57%. Markets in Europe anticipated a muted opening, with Eurostoxx 50, DAX, and FTSE futures signaling minor declines. Meanwhile, the South Korean market struggled amid domestic political turmoil.

(With inputs from agencies.)