That is boosting the relative attraction of the dollar in the currency market.
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The yen slipped Monday on mounting speculation that the Bank of Japan will ramp up its stimulus programme after this week’s policy meeting, while US Federal Reserve prepares for its own gathering. MSCI’s 46-country All World index could not push over peaks hit last week after some record highs on Wall Street.
“The Bank of Japan is really the one that is front and centre this time with the all talk around “helicopter money”, he said.
The Topix index added 0.2 percent to 1,330.81 as of 9:01 a.m.in Tokyo, while the Nikkei 225 Stock Average increased 0.3 percent.
Key focus this week with be on the FOMC and on the Bank of Japan Monetary Policy Meeting.
CURRENCIES: The dollar ticked up to 106.31 yen from 105.87 late last week in Asia.
“Dollar/yen could test the 108 handle if the Fed’s comments this week are supportive towards a rate hike and if the BOJ eases”, said Koji Fukaya at FPG Securities in Tokyo.
However, market turmoil at the start of the year, an uncertain global outlook and the Brexit vote have dented the chances of any more moves in 2016, although the possibility is back on the table after a slew of strong United States data in recent weeks.
In a week where central banks are dominating the news, the Fed and BoJ will both be meeting to set interests rates, and most analysts expect that there will not be a rate hike from the Fed, as the results of the Brexit are still too hard to predict, and the upcoming Presidential election is also raising questions about the future of the global economy.
Oil prices meanwhile hovered near two-and-a-half month lows, having lost about 4% last week on renewed worries about a global crude glut. There is hope that global growth could reduce the impact of the Brexit, should it happen.
The Australian dollar was also little changed, at $0.7471, after slipping 0.4 percent on Friday against the broadly stronger dollar.
Brent crude futures traded at $45.40 per barrel, down 0.6 percent and near Friday’s $45.17 which was its lowest since May 11.
In share trading, Nintendo dived about 16 percent to 23,720 yen after it had more than doubled in a huge rally following Pokemon Go’s release earlier this month – making it more valuable than Sony at one stage.
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The Japanese government is also putting together a massive spending package worth about 20 trillion yen ($187.8 billion), government sources told Reuters last week, though actual public spending will be far less than the headline number suggests.
