Japan shares hit 34-yr highs, yen steady ahead of BOJ decision
Chinese stocks extended declines after a brutal session.
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Japan's Nikkei rose 0.6% to the highest level since February 1990, bringing the year-to-date gains to 9.9%. Meanwhile, MSCI's broadest index of Asia-Pacific shares outside Japan edged 0.2% higher, but were down more than 6% this year due to the tumble in Chinese shares.
The yen languished at 148.12 per dollar, having slid 5% this year. [FRX/]
The BOJ is expected to retain its ultra-easy monetary settings later in the day, as policymakers assess the progress made by the economy towards meeting the conditions for phasing out the decade-long accommodative policy.
None of the economists polled by Reuters expect the central bank to end its negative rate policy this time, though many see it happening in April. Governor Kazuo Ueda will hold a press conference after the decision, with traders focusing on the inflation outlook and any signs of imminent policy change.
«The market will probably be disappointed again because we don't believe that Ueda will give a clear signal of policy normalisation in the near future,» said Robert Carnell, regional head of research, Asia-Pacific, at ING.
«He may, however, sound more dovish than in the past, given the recent slowdown in inflation.»
Yields on Japanese government bonds were flat at 0.65% in early Asia, down from a peak of 0.97% in November.
Most Asian sharemarkets were up, tracking the overnight rally on Wall Street which sent the benchmark S&P 500 to another record high amid little market-moving data and events.
China again proved to be the outlier, with relentless foreign selling and weak confidence pushing the bluechips to five-year lows.
China's
