MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed at 572.42, just below the two-year high of 573.38 it hit on Wednesday boosted by tech stocks
Asian stocks took a breather on Thursday, hovering near their highest in two years as traders awaited more U.S. policy clues, while sterling was steady before a Bank of England meeting where rates are expected to remain unchanged.
Apart from the Bank of England, investors will also watch for central bank decisions from Switzerland and Norway on Thursday.
MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed at 572.42, just below the two-year high of 573.38 it hit on Wednesday boosted by tech stocks. The index is on course for a 4% rise in June.
European stock markets were set for a higher open, with Eurostoxx 50 futures and FTSE futures up 0.2% ahead of the slew of central bank decisions.
The pound was stable at $1.27125 in cautious trading but is down 0.2% in June.
Data on Wednesday showed British inflation returned to its 2% target for the first time in around three years in May, but strong underlying price pressures all but rule out an interest rate reduction ahead of election next month.
Markets have priced in 43 bps of easing from the Bank of England this year.
The Swiss National Bank on the other hand is widely expected to reduce its key policy rate by 25 bps for a second consecutive meeting. Norway’s central bank is likely to keep its key policy interest rate unchanged.
In Asia, Japan’s Nikkei was up 0.10%, while stocks in China and Hong Kong dropped, weighed down by lacklustre property shares, as Beijing left its key benchmark lending rates unchanged despite recent data showing the economy remains wobbly.
The onshore yuan weakened past 7.26 per dollar for the first time since November.
The dollar index was little changed at 105.27, while the euro was stable at $1.0746.
U.S. markets were shut on Wednesday, with tech heavy Nasdaq futures 0.5% higher on Thursday.