U.S. stocks closed lower ahead of Asia’s Tuesday trading day following news that planned stateside tax cuts could be phased. Investors in the region also awaited the release of China’s official Purchasing Managers’ Index and the Bank of Japan’s rates decision later in the session.

Tax cuts were in the spotlight overnight following a Bloomberg report that planned reductions in the corporate tax rate would be gradually implemented. That plan would lower the corporate tax rate by three percentage points each year from the existing 35 percent beginning in 2018.

In response to the latest reports, Press Secretary Sarah Sanders said President Donald Trump’s position on corporate taxes had not changed.

Central banks were also in focus this week, with the Bank of Japan’s two-day meeting first to wrap up on Tuesday. Few surprises are expected from the event.

The Federal Open Market Committee will begin its own two-day meeting on Tuesday and is due to make its interest rates decision on Wednesday U.S. time.

Ahead, Trump is expected to announce his choice for the next chair of the Federal Reserve on Thursday. Most in the markets expect Trump to choose Fed Governor Jerome “Jay” Powell for the role. Other candidates that are in the running include Stanford economist John Taylor, current Fed Chair Janet Yellen and former Fed Governor Kevin Warsh.

U.S. stocks closed lower on Monday following the tax cut reports. The Dow Jones industrial average fell 85.45 points, or 0.36 percent, to end at 23,348.74, the S&P 500 edged down 0.32 percent to close at 2,572.83 and the Nasdaq shed 0.03 percent, or 2.3 points, to finish the session at 6,698.963.

In Asia, futures pointed to a lower open for Japanese equities. Nikkei futures traded in Chicago were down 0.51 percent at 21,900 and Osaka futures were off 0.46 percent. Those were below the Nikkei 225’s previous close of 22,011.67.

The S&P/ASX 200 was little changed early in the session, trading 0.05 percent under the flat line.

Companies on Tuesday’s earnings calendar include Samsung Electronics, Sony and Panasonic.

Following the tax cut news, the dollar declined broadly against a basket of currencies overnight, trading at 94.560 at 6:53 a.m. HK/SIN. That was below levels around the 94.7 handle seen during Asian trade on Monday. Against the Japanese yen, the greenback traded at 113.11.

The Australian dollar was also in focus ahead of the release of China’s official Purchasing Managers’ Index. The Aussie dollar was slightly firmer at $0.7683 at 6:57 a.m. HK/SIN.

Brent crude held above the $60 mark overnight, settling higher by 46 cents at $60.90 a barrel. U.S. West Texas Intermediate crude, meanwhile, advanced 25 cents to settle at $54.15 a barrel — its highest close since February.

The economic calendar for Tuesday is fairly heavy (all times in HK/SIN):

• 7:50 a.m.: Japan September preliminary industrial production
• 9:00 a.m.: China October official manufacturing and services PMI
• 1:00 p.m.: Singapore third-quarter business confidence

Meanwhile, the BOJ is expected to make its interest rates decision during the day.