SINGAPORE — Asia-Pacific markets were set to trade cautiously on Friday, following overnight losses on Wall Street, as investors assessed monetary policy decisions from two key central banks.

Futures indicated a muted opening in Japan where the Nikkei 225Last closed on 29066.32.

Australia shares rose in the early trades with the benchmark ASX 200Gaining 0.4%

Friday’s session follows overnight declinesWall Street saw major market declines due to weakness of large tech stocks.

After earlier in the week the U.S. Federal Reserve stated it would, Bank of England & European Central Bank took the next steps. accelerate the reduction of its monthly bond purchasesThe central bank is expected to raise interest rates after that.

Analysts say that they don’t expect significant changes from the Bank of Japan today, as it announces its monetary policy decision.

Inflation expectations are low and that is why the Bank of Japan won’t follow the Fed in Friday’s direction, Joseph Capurso of the Commonwealth Bank of Australia wrote Friday morning.

Capurso explained that supply issues have been faced by all the industrialized economies.

He said that the stark contrast in US inflation to Japan’s barely-existent inflation suggests that there are no supply bottlenecks. “Some other factors, such as an extremely strong demand impulse in America compared with elsewhere in the US, could be the reason for the extraordinary US inflation impulse.”

The currency market is dominated by the dollar indexThe stock fell 0.533% to 95.998 against its peers.

It Japanese yenWhile the greenback was strengthening, it rose from above 114 and 113.7 to 113.7 Australian dollarChanged hands at $0.7176

Friday’s Asian trading hours saw oil prices fall. U.S. crude futures dipped 0.62% to $71.93.