While Asian stock market indices were trading mixed on Tuesday (26 July), the Shanghai Composite Index was up 0.47% at 3,029.92 as of 5.38am GMT, ahead of central bank meetings of Japan and the US later this week.
Investors are reported to be sceptical of the stimulus programme that the Bank of Japan could announce at its policy meeting on Friday (29 July). "We think they'll deliver a bit of everything, but not quite the bazooka some may be hoping for," Frederic Neumann, co-head of economics at HSBC was quoted as saying by Reuters.
"Our recent conversations with investors suggest that expectations are all over the place. The BoJ could simply do nothing. In the age of shock and awe, that would certainly deliver plenty of that," Neumann added.
Investors also reportedly believe that the US Federal Reserve may not increase interest rates at its policy meeting on Wednesday (27 July. "While we don't expect either the Fed or the Bank of Japan to spring a surprise this week, we do think that investors are underestimating the future contrast in their policies," Alex Holmes at Capital Economics was quoted as saying by the Financial Times.
Indices in the rest of Asia traded as follows on 26 July at 5.51am GMT:
|Hong Kong||Hang Seng Index||22,251.49||Up||1.17%|
Overnight (25 July), the Dow Jones Industrial Average closed at 18,493.06, down 0.42%, while the FTSE 100 closed at 6,710.13, down 0.30%.
Among commodities, oil prices were trading in the green after touching a three-month low overnight. While WTI crude oil was trading higher by 0.21% at $43.22 (£32.97; €39.24) a barrel, Brent crude was trading 0.40% higher at $44.90 a barrel as of 6.01am GMT.
Angus Nicholson, a market analyst at brokerage firm IG, said: "The energy space [in Asia] will be a key drag after the oil price crashed to a three-month low overnight. The materials space is unlikely to provide much lift either, after most industrial metals also headed lower."