“There is considerable uncertainty over the outlook for prices”, Kuroda told a press conference on Friday, after the board of governors held their July meeting.
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European shares .FTEU3 fell on Thursday, as markets awaited the release of the stress test results on European banks on Friday night.
The Bank of Japan left markets underwhelmed on Friday.
Japan’s central bank decided on Friday to further ease monetary policy to boost the country’s economy and end deflation, but unchanged its bond-buying program and interest rates.
Japan’s Nikkei 225 was down 0.3 percent at 16, 411.39. France’s CAC 40 rose 0.2 percent at 4,427.22.
Futures pointed to a fall of around 0.2 per cent at the open on Wall Street on Friday. just before the first estimate of Q2 United States gross domestic product is released.
MSCI’s broadest index of Asia-Pacific shares outside Japan.MIAPJ0000PUS fell 0.64 percent, sliding back from its highest level since August 11 struck earlier in the day. Exxon fell $2.55 to $87.69 and Chevron fell $1.14 to $100.65. South Korea slipped 0.2%, but Australia’s S&P/ASX 200.
The yield on the benchmark 10-year bond rose 1-1/2 basis point to -0.067 percent, the yield on long-term 30-year note climbed 1 basis point to 0.385 percent and the yield on short-term 3-year note jumped 1/2 basis point to -0.633 percent by 09:50 GMT.
Economists and the central bank expected tighter labour market conditions to feed into more inflation, as employees demanded higher wages, pushing other prices up.
Japan’s share market was helped by the BOJ’s commitment to almost double its annual purchases of exchange-traded funds (http://www.marketwatch.com/story/bank-of-japan-oks-more-stimulus-keeps-rate-steady-2016-07-29) and indications the central bank is near its limit on negative interest rates, which raised Japan bank share prices.
Investors had been expecting for more radical stimulus measures.
The focus now shifts to Abe’s fiscal package, the outlines of which are set to be reviewed by the cabinet next week, with analysts anticipating passage in parliament in October.
The BoJ has stood pat on policy since January when it added negative interest rates to its massive asset-buying programme in a fresh attempt to accelerate inflation toward its 2% target.
The U.S. currency cut losses by late hours on buybacks, standing at ¥103.60-64 at 5 p.m., still down from ¥104.68-69 at the same time Thursday.
OIL: In the energy market, benchmark USA crude lost 16 cents to $40.99 on the New York Mercantile Exchange. Brent crude, used to price global oils, fell 10 cents to $43.13 a barrel in London. It lost $1.40 to close at $43.47 the previous day.
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