Asia-Pacific markets set to fall ahead of Australia’s rate decision

Asia-Pacific markets are set to fall ahead of Australia’s central bank rate decision.

Economists polled by Reuters expect the Reserve Bank of Australia to hike its benchmark interest rate by another 25 basis points to 4.35%, bringing it to its highest level since December 2011.

Australia’s markets are set to fall, with futures for the S&P/ASX 200 at 7,216, lower than the index’s last close of 7,246.1.

In Japan, the Nikkei 225 looks to retreat from a new 33-year high recorded on Monday, with the futures contract in Chicago at 33,650, and its counterpart in Osaka at 33,590 against its last close at 33,753.33.

Meanwhile, South Korea’s consumer price index grew at a slower rate of 2.7% in June, marking a fifth straight month of decline.

Hong Kong’s Hang Seng index is set to fall after gaining over 2% on Monday, with futures at 19,176 compared to the HSI’s last close of 19,306.59.

Overnight in the U.S., all three major indexes climbed in a shortened trading session ahead of Independence Day.

The Nasdaq Composite adding 0.21% and the S&P 500 advancing 0.12%. The Dow Jones Industrial Average added 0.03%.

U.S. markets will resume trading on Wednesday.

— CNBC’s Alex Harring, Samantha Subin, and Fred Imbert contributed to this report