Australia | Mar 19 2013
Download related file: afternoon_report_2013-03-19
The analyst principally responsible for the production of this research report is: Howard Humphreys, Director & Lead Research Analyst, Seismic Research
Japan leads Asian rebound on BoJ change
Asian stocks rebounded today, with Japan’s Nikkei-225 leading gains, as the yen resumed its slide against the dollar. Bank of Japan Governor Masaaki Shirakawa steps down today, making way for Haruhiko Kuroda, who has pledged to do whatever it takes to end deflation.
The local market slumped, however, with the ASX 200 reversing an early loss after the Reserve Bank of Australia (RBA) released the minutes for its policy meeting held at the start of the month. The RBA said the impact of the policy easing “still had further to run,” and that while “further reductions may be required, on the information currently to hand it was appropriate to hold rates steady.”
RBA Deputy Governor Philip Lowe said today that a stronger currency and higher savings levels have allowed for lower borrowing costs, even as the mining sector boomed. Lowe also said that the decision to force Cypriot savers into a bailout was a “step back” for the region that could increase instability.
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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