Investing.com - Asian stocks remained near a two-year high on Thursday, taking a pause as traders awaited further cues from US policy. Meanwhile, the British pound remained steady ahead of the Bank of England's (BoE) meeting, where rates are expected to stay unchanged.
Investors are also keeping an eye on central bank decisions from Switzerland and Norway on Thursday to gauge the global rates outlook.
The MSCI's broadest index of Asia-Pacific shares outside Japan was virtually unchanged at 572.97, just shy of the two-year high of 573.38 it reached on Wednesday, largely buoyed by tech stocks. The index is on track for a 4% increase in June.
Japan's Nikkei fell by 0.63%, while Chinese stocks also dipped, with the blue-chip index declining by 0.34%. Hong Kong's Hang Seng index was 0.14% lower.
China's benchmark lending rates remained unchanged at a monthly fixing on Thursday, in line with market expectations, despite signs of a shaky economy.
The onshore yuan weakened past 7.26 per dollar for the first time since November.
Ahead of the BoE policy decision, the pound remained steady at $1.2717 and has depreciated by 0.2% in June. Wednesday's data showed that British inflation returned to its 2% target for the first time in almost three years in May. However, strong underlying price pressures virtually rule out an interest rate cut before next month's election.
The Swiss National Bank is widely expected to cut its key policy rate by 25 basis points for the second consecutive meeting. Norway's central bank is likely to keep its key policy interest rate stable.
A rally in tech stocks on Tuesday, led by AI chipmaker Nvidia, which surpassed Microsoft (NASDAQ:MSFT) as the world's most valuable company, fueled a global surge in tech shares.
The excitement over artificial intelligence has seen technology stocks soar this year, with Nvidia and a select few other major companies leading the charge. This has contributed to record highs in US stocks and also boosted their Asian counterparts.
On a broader scale, investors are seeking fresh indicators of when the Federal Reserve might commence its policy easing cycle, following last week's projection of just one rate cut this year.
The dollar index was little changed at 105.23, while the euro held steady at $1.0746. The Japanese yen remained at 158.05 per dollar, pressured by the significant interest rate disparity between Japan and the United States.
In commodities, oil prices were mixed, with Brent remaining stable at $85.08 per barrel, while US West Texas Intermediate crude for June was down 0.18% at $81.42 per barrel.