The central banks of Canada, Britain and Japan are due to meet this week

Asian markets were mixed on Monday ahead of an expected interest rate cut by the US central bank this week.

Equities have enjoyed a strong run-up over recent weeks as a series of data on jobs and inflation provided the central bank with enough scope to resume its rate cuts.

Wednesday’s policy decision follows figures showing the labour market continuing to soften, while prices have not increased as much as feared in the wake of US President Donald Trump’s tariff war.

The meeting is expected to see the bank reduce borrowing costs by 25 basis points, though some observers predict it could go to 50 points.

Trump said Sunday that “I think you have a big cut. It’s perfect for cutting”.

Still, Pepperstone’s Chris Weston wrote: The market would be surprised if we saw any outcome other than a 25-basis-point cut from the Fed (central bank), even if several Fed governors do vote for a 50-basis-point cut.

Attention will quickly turn to the tone of the (policy board) statement, the guidance from Powell’s press conference, he added.

The central banks of Canada, Britain and Japan are due to meet this week.

Hong Kong, Singapore and Jakarta all gained in early trade, while Seoul hit another record after South Korean officials scrapped a plan to lower the capital gains tax (CGT) threshold for stock investors.

Shanghai edged down after data showed further weakness in China’s economy with growth in retail sales and industrial production much slower than forecasts.

There were losses in Sydney, where ANZ bank, one of Australia’s “big four” lenders, dropped following news it had agreed to pay a record fine of A$240 million (US$159.5 million) over “widespread misconduct”.

Taipei, Manila and Wellington also saw declines.

Tokyo was shut for a holiday.