Asian stocks were resilient on Monday as investors prepared for pivotal decisions from the Bank of Japan and the Federal Reserve later this week. The anticipation of these central banks moved the Asian market higher, with oil prices and U.S. futures also going up. 

Japan’s Nikkei 225 index went up by 2.4%, reaching 39,639.27 after experiencing lows last week ahead of the Bank of Japan’s decision on whether to raise its benchmark interest rate scheduled on Tuesday. 

The BOJ, considering solid wage hike plans for employers contemplates a potential shift from the long-standing negative interest rate policy, which has been at -0.1% since 2016.

In China, economic data for January to February were mixed, with property investment declining while other factors pointed towards improvement.

Hong Kong’s Hang Seng index remained steady at 16,720.40, while the Shanghai Composite index went up by 0.5% to 3,069.67

In Australia, the S&P/ASX 200 remained unchanged at 7,670.60, and South Korea’s Kospi went up by 0.6% to 5,117.09. 

Meanwhile, on Wall Street, stocks faced a second consecutive losing week. The S&P 500 went down by 0.6% to 5,119.09, while the Dow Jones Industrial Average went down by 0.5% to 38,714.77 and the Nasdaq composite dropped by 1% to 15,973.7. 

Technology and communication services stocks including Adobe, Microsoft, Meta Platforms, and Alphabet have led the declines.

Moreover, concerns about inflation persisted among investors, despite signs of cooling, with recent reports indicating an increase in consumer prices. The Federal Reserve is expected to release its latest interest rate forecast on Wednesday. 

As investors navigate uncertainties about inflation, central bank policies, and economic outlooks, market dynamics remain fluid, with ongoing developments in monetary policy and economic indicators poised to influence future market movements.