Australia | Apr 04 2013
Download related file: afternoon_report_2013-04-04
The analyst principally responsible for the production of this research report is: Howard Humphreys, Director & Lead Research Analyst, Seismic Research
Asia retreats while Japan reverses losses on BOJ policy
Asian markets opened lower today on a weak lead from Wall Street following the release of a couple of weak U.S. economic reports. Most indices maintained losses, whereas Japan’s Nikkei-225 quickly turned into the black late in the session after the Bank of Japan said it plans to double the average duration of its Japanese government bond holdings by purchasing bonds of all maturities, including 40-year bonds.
The BOJ said it plans to change its policy approach by targeting to increase the monetary base by 60 to 70 trillion yen per annum, instead of targeting the overnight call rate. Japan’s central bank also pledged to continue with quantitative easing as long as needed to achieve its 2% inflation target.
On the local market, stocks extended losses even as a report showed retail sales surged 1.3% in February, thanks to miners and energy companies on the back of the general carnage in commodity markets overnight. China, Hong Kong and Taiwan were closed today for the Tomb Sweeping Day public holiday.
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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