© Reuters. A male takes a look at an electronic board revealing the current currency exchange rate between Japanese yen against the U.S. dollar and Japan’s Nikkei average outside a brokerage in Tokyo
By Lisa Twaronite TOKYO (Reuters) – Asian stocks slipped on Tuesday ahead of the U.S. Federal Reserve’s two-day meeting that starts later in the day, amid growing concerns this month’s referendum in Britain could see it leave the European Union. The pound and euro have suffered in recent sessions as economists fear a so-called Brexit would tip Europe back into recession. Voters appear divided ahead of the June 23 referendum, with the “Out” project widening its lead over the “In” camp, according to 2 opinion polls published by ICM on Monday. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.6 percent, after Wall Street lost ground for the 3rd straight session. Japan’s stock index skidded 1.5 percent after tumbling 3.5 percent on Monday. “Short-term hedge funds have begun betting on Brexit, and futures gamers will likely dominate the market’s move today,” stated Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley (NYSE:-RRB- Securities. The benchmark 10-year Japanese government bond yield was up to as low as minus-0.175 percent, a fresh record, before edging back to minus-0.170 percent. Unpredictability over this week’s Federal Reserve policy conference has actually weighed on markets, though the United States central bank is extensively anticipated to leave rates unchanged after the much weaker-than-expected Might nonfarm payrolls report. “The committee was actively preparing markets for a June-July rate trek until the release of the Might work report and is unlikely to quit its tightening up predisposition absent added info that labour markets are damaging,” experts at Barclays (LON:-RRB- composed. “Nevertheless, the abrupt slowing down in employment and falling long-run inflation expectations must raise alarm bells, and danger management concerns recommend delaying action up until after the outcome of the UK mandate,” they said. The Bank of England, Swiss National Bank and the Bank of Japan will likewise satisfy this week, and are likewise expected to stand pat on policy with the Brexit vote looming. The, which tracks the greenback against a basket of 6 rival currencies, edged up a little to 94.395, returning toward the overnight high of 94.750. That was its greatest considering that the downbeat U.S. jobs report toppled the dollar on June 3. The perceived safe-haven yen has gained from financiers’ risk aversion. The dollar was down 0.2 percent at 105.99 yen, moving back towards Monday’s low of 105.735, its weakest level considering that early Might. Japanese Financing Minister Taro Aso issued a fresh warning against renewed strength in the yen, saying that he would “securely react” if quick and speculative relocations continued the forex market. The euro was a little lower at $1.1290. Against the yen, it skidded 0.3 percent to 119.69, returning towards a more than three-year low plumbed in the previous session. Sterling likewise notched a three-year low versus the yen on Monday, and was last down 0.8 percent at 150.35 yen. Versus the dollar, the pound dropped 0.6 percent to $1.4180. Crude oil prices continued to slip, pressed by the strong U.S. dollar and worrying economic prospects in Europe and Asia, though losses were contained by ongoing supply failures in Nigeria. [O/R] was down 1 percent at $49.84 per barrel, while shed 1.1 percent to $48.34.