Yen Slides as BoJ Raises Rates, First in 17 Years – Asia Market Wrap

The yen fell after the Bank of Japan ended the world’s final negative interest rates in a widely expected move, but leaving financial conditions easy for now.

Japan’s central bank established a new policy rate range of 0% to 0.1%, cancelled its yield curve control programme, and pledged to continue purchasing long-term government bonds. The country’s government bonds rose, while its stocks advanced, with the Topix index reaching its best close since 1990.

A gauge measuring Asia’s major benchmarks remained negative, weighed down by losses of more than 1% in Hong Kong technology shares and South Korean equities.

The Australian dollar was headed for its lowest level in about two weeks, while the country’s stock market climbed for a second day as the Reserve Bank of Australia maintained policy rates at a 12-year high, despite evidence of the economy slowing more and unemployment rising.