Asian stocks ex-Japan drop, Yen hits 4-week low

• JPY is under pressure despite the drop in Asian stocks. 
• Dampened Fed rate cuts odds likely weighing over equities. 

Asian stocks are losing ground this Tuesday morning with anti-risk Japanese Yen hitting four-week low against the US Dollar. 

As of writing, the Shanghai Composite index is down 0.30% or 8 points at 2,925. Australia's S&P ASX 200 is also down 0.28% or 19 points at 6,653 and stocks in New Zealand, Hong Kong are also flashing red. 

South Korea's Kospi is flat while Japan's Nikkei is up 63 points or 0.30% at 21,583. 

The Japanese stocks are better bid, possibly due to weakness in the Japanese Yen (JPY). The USD/JPY pair rose to 108.90 earlier today, the highest level since May 31 and was last seen trading at 108.84. 

The futures on the S&P 500 are also down 0.15%. The index fell 0.48% on Monday, possibly on caution ahead of the central bank activity due this week. 

Caution seems to have seeped into markets ahead of ey testimony this week from Federal Reserve (Fed) Chairman Jerome Powell. 

The markets are still priced in for a 25 basis point rate by the Fed this month. The prospects of aggressive easing, however, have weakened, courtesy of Friday's upbeat US non-farm payrolls data. 

Apart from dampened Fed rate cuts odds, rising tensions between the US and Iran and Japan and South Korea are likely adding to the bearish tone around the equities.