Asia stocks skid on weak China data, yen dives as BOJ tweaks yield control

hl.co.uk:

We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Newsroom

Newsroom articles are published by leading news agencies. Hargreaves Lansdown is not responsible for an article's content and its accuracy. We may not share the views of the author.

HL Podcast

HL Insight

Asian equities slipped on Tuesday, hovering close to a near one-year low, as manufacturing activity data from China disappointed while the yen weakened past 150 per dollar after the Bank of Japan tweaked its bond yield control policy.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Published by

31 Oct 2023

The yen fell 0.7% against the dollar to touch a session low of 150.12 after the central bank maintained its target for the 10-year government bond yield around 0% set under its yield curve control (YCC) but redefined 1.0% as a loose «upper bound» rather than a rigid cap.

Under criticism that its heavy defence of the cap is causing market distortions and an unwelcome yen fall, BOJ had raised its de-facto ceiling for the yield to 1.0% from 0.5% in July.

Saxo market strategist Charu Chanana said the new reference range suggests the BOJ will allow yields to rise above 1%, while still trying to keep the changes to policy very subdued.

«Speculation of an eventual removal of YCC will continue to build… last week proved that dollar/yen at 150 is not a line in the sand, and this could bring a test of 152,» Chanana said.

The