July 31 (Reuters) - A look at the day ahead in Asian

markets.

Asian assets have rarely been exposed to as many market-moving

triggers in one day than they will be on Wednesday, with the

Bank of Japan rate decision and China's purchasing managers

index reports topping a packed policy, data and corporate

calendar.

Investors are also bracing for second quarter GDP estimates

from Taiwan and Hong Kong, inflation numbers from Australia, and

earnings from corporate heavyweights including HSBC, Samsung,

Panasonic, Mitzuho and Sumitomo.

All that follows heavy after-the-bell selling of U.S. Big

Tech on Tuesday after Microsoft warned of slow returns on AI

technology spending, and comes ahead of the Federal Reserve's

rate decision on Wednesday.

With so much event risk looming - it's month-end too - an

escalation in Middle East tensions could not have come at a more

sensitive time for markets. World stocks, the S&P 500, Nasdaq

and U.S. Treasury yields all slid on Tuesday.

The dollar on Tuesday hit a three-week high on an index

basis, nudged above 155.00 yen, and was fixed at its strongest

level since November against the Chinese yuan. But it ended U.S.

trading on the defensive.

The BOJ's policy decision is on a knife-edge, at least

according to money market pricing, which indicates a 55%

likelihood the BOJ will raise rates by 10 basis points. That's

down from a 60% probability earlier this week.

If the central bank stands pat and delivers a dovish

message, the dollar could head back up to intervention territory

around 160.00 yen. A hike and hawkish stance could bring 150.00

into view.

While policymakers are expected to outline plans to taper

the bank's huge bond-buying stimulus, a rate cut is a close

call. They may wait and see what the Fed does later on

Wednesday, making a move in September more likely.

While the Bank of Japan deliberates how it will tighten

policy, the People's Bank of China is going the other way, and

PMIs from Beijing on Wednesday will give the first glimpse of

how the world's second largest economy performed in July.

Expectations are being kept low - the manufacturing PMI is

forecast at 49.3, according to a Reuters poll, down from June's

49.5 and marking the third month of contraction in a row.

More stimulus is needed if 2024 GDP growth is to reach

Beijing's 5% target, especially with U.S. tariffs coming down

the pike. Chinese leaders on Tuesday signalled that stimulus

will be directed at consumers, deviating from their usual

playbook of pouring funds into infrastructure projects.

Elsewhere, Australian inflation in June is expected to come

in at 3.8%, up from 3.6% in May, while annual GDP growth in

Taiwan is seen slowing to 4.8% in the April-June period from

6.6% in Q1.

Here are key developments that could provide more direction

to markets on Wednesday:

- Bank of Japan policy decision

- China 'official' PMIs (July)

- Taiwan GDP (Q2)