“But investors were disappointed with the result, they think it is not enough to prop up the economy of Japan”, she said in an interview.
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The Bank of Japan raised the target for exchange-traded fund purchases so that their outstanding amount will rise at an annual pace of about JPY 6 trillion. France’s CAC 40 was 0.1 percent higher at 4,423.
The package included direct fiscal measures such as boosting spending by national and local governments as well as loan programs.
“With the BOJ unwilling to be more aggressive and also hesitant to intervene in the FX market, the market will question (its) determination to see a weaker yen”, said Matthias Hoppe, a portfolio manager at global investment firm Franklin Templeton Solutions.
The Bank of Japan (BoJ) pledged to increase purchases of Exchange-Traded Funds but kept interest rates steady at the close of its two-day meeting on Friday, undercutting market expectations of hefty stimulus.
It is set for a 1.2 percent gain for the week, and 5.7 percent for the month.
Societe Generale’s strategist Kit Juckes called the changed a “damp squib”.
The BoJ (Bank of Japan) gave its economic outlook after the monetary policy meeting on July 29, 2016. Although the Nikkei’s initial fall was stabilised by the financial sector. Investors were relieved that the BOJ didn’t further cut rates, which have eaten into the profit margins of Japanese banks.
Trading conditions in the greenback against the yen had been extremely illiquid steering into the BoJ’s statement, with the bid to ask spread widening to 0.40 yen at some point, though later narrowing back to an estimated 0.02 yen as trading conditions regularized. It was at 104.58 just before.
Elsewhere in markets, oil prices fell to three-month lows, with US benchmark now down more than 20 percent from this year’s peak on growing worries that the world might be pumping more crude than needed.
After all the speculation and hype, the BOJ ended up announcing only a small tweak to policy earlier Friday.
Japan’s economy expanded at the fastest pace in a year in the first quarter, but analysts say growth will not pick up much for the rest of this year as slow wage gains crimp consumption.
The BOJ’s move comes after Abe said Wednesday his government would compile a stimulus package worth more than 28 trillion yen ($265 billion, 241 billion euros) to get the ailing economy on its feet again.
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The BOJ has stood pat on policy since January when it added negative interest rates to its massive asset-buying program in a fresh attempt to accelerate inflation toward its 2 percent target.
