Investing.com - Most Asian bourses rebounded from losses earlier in Tuesday’s session after the Bank of Japan boosted its inflation target and committed to open-ended asset purchases in an effort to rid Japan of deflationary pressures.
In Asian trading Tuesday, Japan’s Nikkei 225 rose 0.62% after the central bank there raised its inflation target to 2%, inline with that of Prime Minister Shinzo Abe’s. BoJ was previously committed to an inflation target of 1% until some sign of inflation in the deflation-riddled economy could be spotted.
Japan, the world’s third-largest economy, last had 2% inflation in 1997 when USD/JPY resided in the 130 area. Amid intense pressure from Abe, traders widely expected the central bank to up its inflation target. While previous efforts to raise inflation and dampen the yen’s rise have failed, Abe’s radical initiatives seem to be restoring faith among traders that Japan may be turning a corner.
Hong Kong’s Hang Seng added 0.28% while the Shanghai Composite rose 0.09%. Health care and staples names lead the declines for Chinese equities, but financial services issues were spotted higher.
Trading in Australia was listless prior to the BoJ announcement, but that country’s S&P/ASX 200 rose 0.2%. Japan is Australia's second-largest trading partner after China, though that relationship could be strained if Australian exporters suffer at the hands of a stronger Aussie dollar and weaker yen.
Also subject to some directionless trading prior to the BoJ new, New Zealand equities were able to piece together some gains with the NZSE 50 adding 0.08%.
Elsewhere, South Korea’s Kospi jumped 0.28% while Singapore’s Straits Times Index slid 0.02%. Should the yen continue to slide, some traders think South Korean equities could be vulnerable to some downside as Japanese exporters become more competitive with their South Korean rivals.
S&P 500 futures added 0.08%. U.S. markets were closed Monday in observance of the Martin Luther King, Jr. national holiday and will reopen later today.
In Asian trading Tuesday, Japan’s Nikkei 225 rose 0.62% after the central bank there raised its inflation target to 2%, inline with that of Prime Minister Shinzo Abe’s. BoJ was previously committed to an inflation target of 1% until some sign of inflation in the deflation-riddled economy could be spotted.
Japan, the world’s third-largest economy, last had 2% inflation in 1997 when USD/JPY resided in the 130 area. Amid intense pressure from Abe, traders widely expected the central bank to up its inflation target. While previous efforts to raise inflation and dampen the yen’s rise have failed, Abe’s radical initiatives seem to be restoring faith among traders that Japan may be turning a corner.
Hong Kong’s Hang Seng added 0.28% while the Shanghai Composite rose 0.09%. Health care and staples names lead the declines for Chinese equities, but financial services issues were spotted higher.
Trading in Australia was listless prior to the BoJ announcement, but that country’s S&P/ASX 200 rose 0.2%. Japan is Australia's second-largest trading partner after China, though that relationship could be strained if Australian exporters suffer at the hands of a stronger Aussie dollar and weaker yen.
Also subject to some directionless trading prior to the BoJ new, New Zealand equities were able to piece together some gains with the NZSE 50 adding 0.08%.
Elsewhere, South Korea’s Kospi jumped 0.28% while Singapore’s Straits Times Index slid 0.02%. Should the yen continue to slide, some traders think South Korean equities could be vulnerable to some downside as Japanese exporters become more competitive with their South Korean rivals.
S&P 500 futures added 0.08%. U.S. markets were closed Monday in observance of the Martin Luther King, Jr. national holiday and will reopen later today.