Asian equities drop ahead of RBA rate decision & China data

Asian shares snapped five day winning streak ahead of the Reserve Bank of Australia (RBA) decision and China services PMI release.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.10%. At the time of writing, Japan’s Nikkei was down 1%. Australia’s S&P/ASX 200 was down almost 1% as well. Financial markets were closed on Monday for Independence Day.

Investors await the RBA rate decision. The Australian central bank is widely expected to keep interest rates at its policy announcement today. Meanwhile, China's service sector PMI will be watched out by markets as well.

Asian stocks rallied for fifth straight day on Monday on hopes the central banks would continue to grease markets in the post Brexit world.