Asian shares slipped on Thursday as disappointing Chinese economic data and a sharp fall in copper prices weighed on sentiment, while the yen firmed after the Bank of Japan held interest rates steady but raised its inflation forecast.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7%, though it remains on track for a fourth straight monthly gain in July. Stocks in Hong Kong and China led the declines after official purchasing managers’ indices showed weaker-than-expected activity.

The yen strengthened 0.6% to 148.62 per U.S. dollar after the Bank of Japan unanimously kept its short-term rate at 0.5% but signalled a possible rate hike later in the year. Japanese shares were little changed, with the Nikkei 225 index last up 0.9%.

Investors also digested a flurry of developments, including a U.S.-South Korea trade deal, the Federal Reserve’s decision to hold rates steady, and strong earnings from Microsoft and Meta Platforms. Nasdaq futures jumped 1.2% on the back of the tech results, while S&P 500 futures rose 0.8%.

The Federal Reserve’s rate-setting committee voted 9-2 to keep rates unchanged for the fifth consecutive meeting, the first time in over three decades that two governors dissented. Fed Chair Jerome Powell’s remarks tempered expectations of a September rate cut.

The U.S. dollar index traded at 98.81, just below Wednesday’s two-month high, and is set for its first monthly gain of 2025.

Copper futures plunged 19% after President Donald Trump announced a 50% tariff on copper pipes and wiring, though raw materials such as ores and cathodes were excluded.

Oil prices were steady, with Brent crude for September delivery down 0.2% at $73.10 a barrel, while U.S. West Texas Intermediate was unchanged at $70.01.

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