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.