The yen strengthened 0.1 per cent to 105.48 per dollar as of 3.05pm in NY. Malaysia s ringgit and Indonesia s rupiah each added 0.4 percent.
Advertisement
“But the BOJ can’t save its face if it does not cut rates into negative territory after it introduced the negative interest rate policy (in January), so we need to brace for such possibility, too”.
Asian stock benchmarks were mostly lower Thursday as investors digested an upbeat Fed assessment of the USA economy that raised the prospect of further rate hikes, while anticipating more stimulus from Japan.
Japan’s central bank is expected to deliver fresh monetary stimulus at its policy meeting that wraps up Friday.
Solid economic data has increased expectations that the Fed will raise rates in December, though some traders and analysts believe the Fed could hint on Wednesday that a September hike is possible.
There are growing expectations that the BOJ will announce more monetary easing when its policy setters wrap up their two-day meeting Friday, to help support the government’s large-scale stimulus measures.
Prime Minister Shinzo Abe announced the programme in a speech in southwestern Japan, giving few details except to say it would include about 13 trillion yen in fiscal measures including government spending.
Australia’s ASX 200 index traded up 0.12 percent, with the energy and material sub-indexes dropping in early trade.
“From all outward appearances, the Fed seems to be inching its way back to the rate hike table, with a lift in its economic assessment keeping its options open for a hike later in the year, should conditions warrant it”, David Croy, a senior rates strategist in Wellington at ANZ Bank New Zealand, said in a note to clients.
In currency markets, the dollar dived to 104.85 yen from 105.31 yen in NY and 105.78 yen in Tokyo earlier Wednesday. The BOJ will release its statement on Thursday, July 28 at midnight EDT and the central bank outlook report will be published at 1:00 am on Friday, July 29 EDT to be followed by a press conference.
HAVEN’T DRIVEN A FORD LATELY: Ford shares lost $1.38, or 10 percent, to $12.47 after the company reported a 9 percent drop in profits as sales slowed in the US and struggled in China. The initial draft states that cash from “mass market” wealth products can only be invested in money or bond markets, and not in domestically listed shares, said a person with direct knowledge of the matter.
Frankfurt stocks advanced 0.7 percent and Paris was 1.2 percent up.
The Dow and S&P 500 finished little changed, but the tech-rich Nasdaq advanced 0.6 percent after tech behemoth Apple surged 6.5 percent following better than expected earnings.
Advertisement
USA crude rose 0.2 per cent to $42.02 a barrel on bargain hunting after sliding to a three-month low of $41.68 on Wednesday after news U.S. crude and gasoline stocks had surged.
