Australia | Jan 22 2013
Download related file: afternoon_report_2013-01-22
The analyst principally responsible for the production of this research report is: Howard Humphreys, Director & Lead Research Analyst, Seismic Research
Asia fluctuates as BoJ promises future asset purchases
Japan’s Nikkei-225 set the tone for Asian markets today, fluctuating as the Bank of Japan disappointed many investors hoping for a bolder move and European finance ministers approved a new disbursement of aid for Greece’s struggling government. Japan’s central bank delivered on the expected doubling of its inflation target to 2% and went beyond forecasts by saying it will adopt a Federal Reserve-style open-ended (“unlimited”) asset purchasing program of about 13 trillion yen (US$145 billion) a month. The purchases, however, will not kick in until the start of next year, disappointing investors hoping for immediate action to combat stagnant growth and deflation.
RBS Securities Japan said the Bank of Japan is likely to come under increasing pressure from Japan’s Prime Minister to present a clear timeframe on the inflation target and asset purchases, putting at risk the central bank’s independence. In Europe meanwhile, the region’s finance ministers discussed the ESM providing direct aid to the euro-zone’s banks.
To read today's report in PDF in full, see link at the top of this story.
(For a more comprehensive summary of last night’s market action see FNArena’s Overnight Report.)
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