Nikkei Slumps 3% on BOJ’s Inaction, Drags Rest of Asia Lower
The stocks on the Asian bourses reversed course dramatically after BOJ’s
monetary policy decision disappointed markets and dampened investors’
sentiment. Japan’s Nikkei witnessed heavy selling and drove most major
Asian indices lower.
At its policy review meeting this Thursday,
the Japanese central bank kept its monetary policy settings unadjusted,
disappointing markets, who expected additional easing measures in a bid
to weaken the yen and combat deflationary pressures.
Nikkei plunges, back below 17k mark
The
Japanese stocks gave back heavy gains and fell sharply lower after yen
surged nearly 2.30% against the US dollar after the BOJ surprised
markets with no change in its monetary policy. The Japanese benchmark
index, the Nikkei 225 now sinks -2.60% to 16,840 points, while USD/JPY slumps -2% to 109.25.
The
Chinese equities also erased gains and turned in the negative territory
as BOJ squashed of more easy money flooding the stock markets. The
benchmark Shanghai Composite index drops -0.68%, the CSI300 index slips
-0.45%, while Kong’s Hang Seng trades moderately higher around 21,450
points.
While the Australian indices hold gains and outperform
its Asian peers, as awful CPI figures keep more rate cut hopes from the
RBA alive. Australia’s ASX 200 index advances +0.65% to 5,225.