The Sydney Opera House Sydney, New South Wales, Australia.
This is CNBC's live blog covering Asia-Pacific markets.
Asia-Pacific markets traded mixed on Tuesday as investors prepared for the U.S. presidential election and a possible interest rate cut from the Federal Reserve later this week.
Japan's Nikkei 225 rose 1.11% to close at 38,474.9, while the Topix gained 0.76% to close at 2,664.26.
South Korea's Kospi lost 0.47 to close at 2,576.88%, while the Kosdaq slipped 0.3% to 751.81%. The country's consumer inflation in October rose 1.3% from a year ago, slightly cooler than Reuters' expectations of 1.4%.
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Hong Kong's Hang Seng Index was up 1.8% as of its last hour of trade. Mainland China's CSI 300 rose 2.53% to close 4,044.57.
Australia's S&P/ASX 200 slid 0.4% to close at 8,131.8. The Reserve Bank of Australia held its cash rate steady at 4.35% for the eighth meeting in a row, in line with Reuters' expectations.
Overnight in the U.S., the Dow Jones Industrial Average slumped 257.59 points, or 0.61%, to close at 41,794.60. The S&P 500 dipped 0.28% to settle at 5,712.69, and the Nasdaq Composite dropped 0.33% to 18,179.98.
Money Report
The moves in stocks Monday came as safe-haven U.S. Treasurys rallied, suggesting that some investors may be reducing risk ahead of Election Day.
In addition to the election, Wall Street is preparing for the Federal Reserve's upcoming rate decision on Thursday. According to CME Group's FedWatch Tool, traders anticipate a 99% chance of a quarter-point rate cut at the end of the central bank's policy meeting, following a half-percentage-point reduction in September.
—CNBC's Jesse Pound and Samantha Subin contributed to this report.
Australia's central bank keeps rates unchanged at 4.35%
Australia's central bank held its benchmark interest rate at 4.35% for the eighth meeting in a row, in line with expectations from economists polled by Reuters.
In contrast to other central banks in advanced economies, the Reserve Bank of Australia wrote in its statement that "inflation has fallen substantially since the peak in 2022," but also added that underlying inflation is too high.
Economists from ANZ, Commonwealth Bank of Australia and HSBC had similarly expected the central bank to hold the cash rate steady, with ANZ forecasting that the first cut will come in February 2025.
—Lim Hui Jie, Lee Ying Shan
China's services activity grew at fastest pace in three months, says private survey
China's services sector in October saw its fastest growth in three months, a private sector survey showed.
The Caixin/S&P Global services purchasing managers' index climbed to 52.0 in October, up from 50.3 in September on the back of increased confidence on future output and increase in business activity. A reading above 50 indicates expansion, while a figure below 50 reflects a contraction.
"Growth in new business partly reflected another solid rise in export orders. This led to a quicker rise in business activity while the level of backlogged work also increased," the survey's economists wrote.
China's service providers also continued to raise staffing levels in October.
—Lee Ying Shan
China reviews plan to increase local government debt
A closely watched meeting of China's parliament standing committee on Monday reviewed a proposal to raise the local government debt limit, according to state media.
New debt would go toward replacing hidden debt, the report said, noting that Finance Minister Lan Fo'an spoke at the meeting on the plan.
Lan indicated at a press conference last month that an increase in the local debt limit was in the works. Local authorities in China have historically been responsible for much of public services spending, but have struggled financially as revenue from land sales to developers has dropped.
—Evelyn Cheng
South Korea inflation eases to slowest pace in four years
South Korea's consumer inflation in October rose 1.3% from a year ago, easing to its slowest pace since early 2021, according to data from LSEG.
The reading is slightly cooler than Reuters' expectations of 1.4%, and compares against September's clip of 1.6% and August's 2% — easing for a third consecutive month.
On a monthly basis, the index remained unchanged.
Last month, the Bank of Korea cut its benchmark interest rate by 25 basis points to 3.25% after holding for nearly two years, driven by easing inflation. The BOK is scheduled to meet on Nov. 28.
—Lee Ying Shan
CNBC Pro: Goldman Sachs names 2 top auto stocks in Asia — giving one 44% upside
Goldman Sachs has refreshed its list of top stock picks in Asia to include two automotive stocks. The stocks are featured on the investment bank's "Conviction List - Directors' Cut," which seeks to offer a "curated and active" list of buy-rated stocks.
It comes as auto companies have been in the spotlight in the region following stronger SUV sales in countries like India and high electric vehicle adoption in China.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
CNBC Pro: How European investors can hedge against a Trump win, according to Barclays
Investors in Europe who are concerned about former President Donald Trump's potential return to the White House have several options at their disposal, according to Barclays strategists.
The bank suggested that European equities could face significant headwinds if Trump wins the presidency, primarily due to the potential for trade tariffs and protectionist policies, and named stocks and options contracts to play the various outcomes.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Stocks close lower Monday as Election Day looms
The major averages slumped in the final session before Election Day.
The Dow Jones Industrial Average lost nearly 258 points, or 0.6%. The Nasdaq Composite and the S&P 500 both slipped about 0.3%.
— Darla Mercado
Traders are pricing in too many Fed rate cuts, BlackRock Investment Institute says
Traders are still pricing in Federal Reserve rate cuts too aggressively, according to the BlackRock Investment Institute.
Jean Boivin, the head of the institute, said in a note to clients on Monday that lingering inflation could keep the Fed's benchmark rate higher than expected through 2025. Traders are currently pricing in more than one full percentage point of additional rate cuts by the end of next year, according to the CME FedWatch Tool.
A solid economy and stubborn inflation will likely keep the central bank from taking rates that low, Boivin said.
"U.S. Q3 GDP data last week showed consumer spending is still driving overall economic growth. Average monthly job creation over the past three months now stands at 104,000 after last week's jobs report — still a healthy pace and one likely to pick up given hiring stalled due to hurricane-related disruptions. As the U.S. election occurs, neither presidential candidate is focused on budget deficits that are likely to stay large no matter who wins," Boivin's note said.
— Jesse Pound
Oil gains more than 2% after OPEC+ delays production boost
Crude oil futures rose more than 2% on Monday, after OPEC+ delayed plans to increased production by one month until the end of December.
U.S. crude oil had gained $1.70, or 2.45%, to $71.19 per barrel by 11:45 a.m. ET, while global benchmark Brent was up $1.66, or 2.27%, to $74.76 per barrel.
OPEC+ plans to increase production and soft demand in China have weighed on prices for months, though the war in the Middle East has intervened occasionally to support brief rallies.
— Spencer Kimball
