Asia stocks mixed after Bank of Japan policy decision

Asian markets were mixed yesterday  as the Bank of Japan tweaked its monetary policy in a bid to make its massive easing programme sustainable, with stocks recovering early losses fuelled by a slump among US tech firms, reports AFP from Honk Kong.

Tokyo’s key Nikkei index closed marginally higher, edging up 0.04 per cent after the BoJ announced it had revised down inflation forecasts while making minor changes to its ultra-loose monetary policy for the first time in nearly two years.

There had been widespread speculation that the central bank would alter the policy, seeking to offset the effects of negative interest rates and its massive bond and asset buying.

But the BoJ made only small adjustments by introducing some flexibility, a move that left investors relieved as it was “largely within market expectations”, Hiroaki Hiwata, strategist at Toyo Securities, told AFP.

The decision sent the yen into fluctuation, with the dollar shooting up against the Japanese currency, trading at 111.31 yen against the dollar against 111.00 yen in New York.

“All eyes are on a news conference by BoJ governor (Haruhiko) Kuroda as the market wants to see how he will refer to the side effects” of the ultra-loose policy, said Masakazu Satou, senior analyst at Gaiame Online.

China’s benchmark Shanghai Composite Index gained 0.3 per cent by the end of trade, paring earlier losses, while July factory activity growth fell short of expectations.

Singapore was 0.3 per cent up and Taipei also edged up 0.2 per cent, but Hong Kong closed down 0.5 per cent following a negative lead on Wall Street.

US tech equities suffered a significant tumble on Monday, pushing the tech-rich Nasdaq Composite Index in New York down 1.4 per cent—the third straight day it had lost at least one percent.

Silicon Valley shares have been in retreat since Facebook last week signalled slower growth as it spends more on data security in response to criticism over its privacy policies.

The slump affecting the sector’s biggest five stocks—Facebook, Apple, Amazon, Netflix and Google—has injected trepidation into world markets ahead of an Apple earnings announcement later Tuesday, analysts said.

“The markets heavyweight champions are having a rough day, but US markets pruned much of their losses as bank stocks and surging oil prices boosted producers,” said Stephen Innes, head of Asia Pacific currency trading at OANDA.

“All eyes will remain on Nasdaq as the Wall Street wall of worry continues to build around the tech sector,” he added.

Manila fell 1.3 per cent, while Singapore put on 0.3 per cent and Australia and Seoul were flat, as investors digest the BoJ decision and wait for policy announcements from the US Federal Reserve on Wednesday and the Bank of England on Thursday.

Oil prices eased in Asian trade Tuesday as concerns about oversupply sparked by rising output from key producers weighed down on market sentiment.

Prices had closed higher on Monday, driven by robust growth in the US economy—the biggest in the world—and a rebel attack on Saudi oil tankers in the Red Sea that forced the Saudi government to suspend crude supplies from being shipped on a key waterway.

“Crude oil prices rises as markets remain exuberant from robust US economic releases and the potential of vigorous oil demand growth,” said Benjamin Lu, a commodities analyst with Phillip Futures in Singapore.

 

Asia stocks mixed after Bank of Japan policy decision

Asian markets were mixed yesterday as the Bank of Japan tweaked its monetary policy in a bid to make its massive easing programme sustainable, with stocks recovering early losses fuelled by a slump among US tech firms, reports AFP from Honk Kong. Tokyos key Nikkei index closed marginally higher, edging up 0.04 per cent after the BoJ announced it had revised down inflation forecasts while making minor changes to its ultra-loose monetary policy for the first time in nearly two years. There had been widespread speculation that the central bank would alter the policy, seeking to offset the effects of negative interest rates and its massive bond and asset buying. But the BoJ made only small adjustments by introducing some flexibility, a move that left investors relieved as it was largely within market expectations, Hiroaki Hiwata, strategist at Toyo Securities, told AFP. The decision sent the yen into fluctuation, with the dollar shooting up against the Japanese currency, trading at 111.31 yen against the dollar against 111.00 yen in New York. All eyes are on a news conference by BoJ governor (Haruhiko) Kuroda as the market wants to see how he will refer to the side effects of the ultra-loose policy, said Masakazu Satou, senior analyst at Gaiame Online. Chinas benchmark Shanghai Composite Index gained 0.3 per cent by the end of trade, paring earlier losses, while July factory activity growth fell short of expectations. Singapore was 0.3 per cent up and Taipei also edged up 0.2 per cent, but Hong Kong closed down 0.5 per cent following a negative lead on Wall Street. US tech equities suffered a significant tumble on Monday, pushing the tech-rich Nasdaq Composite Index in New York down 1.4 per centthe third straight day it had lost at least one percent. Silicon Valley shares have been in retreat since Facebook last week signalled slower growth as it spends more on data security in response to criticism over its privacy policies. The slump affecting the sectors biggest five stocksFacebook, Apple, Amazon, Netflix and Googlehas injected trepidation into world markets ahead of an Apple earnings announcement later Tuesday, analysts said. The markets heavyweight champions are having a rough day, but US markets pruned much of their losses as bank stocks and surging oil prices boosted producers, said Stephen Innes, head of Asia Pacific currency trading at OANDA. All eyes will remain on Nasdaq as the Wall Street wall of worry continues to build around the tech sector, he added. Manila fell 1.3 per cent, while Singapore put on 0.3 per cent and Australia and Seoul were flat, as investors digest the BoJ decision and wait for policy announcements from the US Federal Reserve on Wednesday and the Bank of England on Thursday. Oil prices eased in Asian trade Tuesday as concerns about oversupply sparked by rising output from key producers weighed down on market sentiment. Prices had closed higher on Monday, driven by robust growth in the US economythe biggest in the worldand a rebel attack on Saudi oil tankers in the Red Sea that forced the Saudi government to suspend crude supplies from being shipped on a key waterway. Crude oil prices rises as markets remain exuberant from robust US economic releases and the potential of vigorous oil demand growth, said Benjamin Lu, a commodities analyst with Phillip Futures in Singapore.