Yen Drops as Asian Stocks Decline on BoJ Bond Decision – Asia Market Wrap
Following a spike in Japanese stock prices, Asian equities moderated their losses, and the Yen declined as the BoJ decided to postpone cutting back on its bond purchases.
The Yen nearly fell below 158 per dollar after the Bank of Japan kept its benchmark rate at 0% to 0.1% and stated it will outline a plan for bond purchases at the July meeting, delaying reductions in buying until at least then. Meanwhile, Japan’s Topix index recovered from early declines to trade as much as 0.9% higher. Bond futures in Japan spiked higher.
As advances in Japan’s market benchmark were offset by losses in Australian and Chinese companies, MSCI’s Asia Pacific index declined. The regional gauge is still expected to drop for the third time in the previous four weeks. A fourth week of losses for mainland Chinese stocks continued, as calls to loosen policy by the country’s central bank to improve morale and assist a struggling economy grew.
As the S&P 500 set a record for the fourth day in a row, driven by a spike in tech equities, US stock futures saw just slight advances in Asia. The dollar’s relative value to other major world currencies remained stable.
