Exchange rate decisions of BOK, RBI, RBNZ in the coming week

On Monday, Asia-Pacific markets recorded mainly gains, led by Japan Nikkei 225 rising almost 2% as investors await weekly decisions from central banks across the region.

The Nikkei index rose 1.8% on financial indexes and consumer cyclicals to close at 39,332.74. Mizuho Financial Group AND Nikon were among the biggest gainers in the index.

Separately, shares of a video game company Nintendo rose 4.4% on Monday after reports that Saudi Arabia’s sovereign wealth fund was considering increasing its stake in the company.

Kyodo also reported that the kingdom’s Public Investment Fund is also considering acquiring more shares in Japanese video game companies. Currently, MTP owns shares in Nintendo, Koei Tecmo Holding as well as from gaming software developers such as Nexon AND Capcom.

The yen strengthened 0.15% to 148.46 after reaching its weakest level in over two months earlier in the session. The dollar gained after Friday’s strong U.S. jobs report, which also lowered expectations that the Federal Reserve would need another 50 basis point rate cut.

The yen also came under pressure after new Japanese Prime Minister Shigeru Ishiba said he “does not think the environment is ready for an additional interest rate increase” from the Bank of Japan.

This week, three central banks, namely the Bank of Korea, the Reserve Bank of New Zealand and the Reserve Bank of India, are scheduled to publish their interest rate decisions.

Economists polled by Reuters expect the BOK and RBNZ to cut interest rates, while the RBI will keep them.

The BOK is expected to cut its benchmark interest rate to 3.25% from 3.5% on Friday, while the RBNZ is expected to make a 50 basis point cut to 4.75% on Wednesday.

In August, the RBNZ surprised economists by cutting its key interest rate to 5.25% from 5.5%.

South Korea Kospi pared losses to rise 1.58% to 2,610.38, while small-cap Kosdaq rose 1.56% to end at 781.01.

Australia’s S&P/ASX 200 index rose 0.68% to close at 8,205.4, and lithium shares in Australia rose after Rio Tinto expressed interest in acquiring US lithium producer Arcadium.

Liontown Resources increased by 18.92%, Mineral Resources increased by 4.61%, while Pilbara Minerals and IGO increased by approximately 1.64% and 2.65% respectively. Arcadium Lithium shares listed on the Australian Stock Exchange increased by over 45%.

However, Hong Kong Hang Seng Index as of last hour, they were up 1.32% while mainland China markets remained closed for the Golden Week holiday and will return to trading on Tuesday. The HSI briefly breached the 23,000 mark on Monday and if it closes above that level, it would be the first time since February 2022.

In the U.S., stocks rose on Friday after a stronger-than-expected jobs report gave investors confidence in the health of the economy.

The data showed nonfarm payrolls rose by 254,000 in September, well above the 150,000 gain forecast by economists surveyed by Dow Jones. The unemployment rate fell to 4.1% despite expectations that it would remain steady at 4.2%.

The S&P 500 rose 0.9% and the Nasdaq Composite rose 1.22%. The Dow Jones Industrial Average rose 0.81% to an all-time closing high of 42,352.75.

—CNBC’s Lisa Kailai Han and Alex Harring contributed to this report.