Stocks in Asia traded mixed as global markets prepared for a wave of central bank decisions, with investors weighing the resilience of the economy against the possibility of further rate hikes.

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Shares advanced at the open in Japan, but fell in South Korea and were flat in Australia. Futures for Hong Kong stocks declined and an index of US-listed Chinese shares eked out a small increase.

Contracts for US shares were mostly flat in Asia on Monday after the S&P 500 closed little changed on Friday and the Nasdaq 100 saw continued selling in technology companies following a disappointing batch of results earlier in the week.

The yen was little changed after weakening more than 2% last week, with the sharpest part of the move coming after a report late Friday that Bank of Japan officials see little urgent need to address the side effects of their ultra-loose monetary policy. Most major currencies traded within narrow ranges versus the dollar Monday.

Treasury yields steadied across tenors in early trading hours on Monday. Yields on long-dated Australian bonds rose, while those on New Zealand notes declined.

Eyes on central banks

Earnings and central bank decisions will be in focus this week. US heavyweights including Alphabet Inc., Exxon Mobil Corp. and Meta Platforms Inc. are all due to report, while in Asia investors will be watching names including Samsung Electronics Co., Rio Tinto and Hitachi Ltd.

Traders are positioning for the Federal Reserve and the European Central Bank to raise interest rates and to signal whether more hikes are likely. The BOJ is projected to stand pat, letting the rate gap with its peers widen as it waits for sustainable inflation.

“The Fed should not signal another skip in September, as doing so for the June meeting really handcuffed the Fed at a time when it needed maximum flexibility,” Win Thin, global head of currency strategy at Brown Brothers Harriman & Co., wrote in a note. “Given how firm the labor market remains, we believe the right thing for the Fed to do is to emphasize a more data-dependent approach and stress that a skip in September should not be assumed.”

Attention in Chinese markets this week is on any further government stimulus with a Politburo meeting approaching. Expectations among global fund managers are low as Beijing tries to prop up growth without the kind of strong action that may create asset bubbles. Chinese stocks notched their worst week in four on Friday, despite a series of vows to boost consumption and businesses.

“The market is high on expectations (for stimulus) but have so far refrained from expressing a strong view in financial assets, and the CN50, CHINAH and yuan have yet to see any trend,” Chris Weston, head of research at Pepperstone Group Ltd., wrote in a note.

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