Japanese Stocks, Bonds Fall Ahead of BOJ Decision: Markets wrap
Japanese stocks dropped and government bond yields rose ahead of a potentially market-moving decision from the nation’s central bank, the highlight of an event-packed day in Asia.
Equity benchmarks dropped more than 1% in Japan. Those in South Korea climbed, buoyed by gains in Samsung Electronics Co. after the chipmaker reported its fastest pace of profit growth since 2010. Contracts for Hong Kong were little changed.
The mixed moves came after the world’s largest technology companies extended losses in late US hours as Microsoft Corp.’s results fueled concern the artificial-intelligence frenzy market might have gone too far. A rotation out of big tech has dragged the Nasdaq 100 down 9% from its all-time high — leaving it on the cusp of a correction.
The yen strengthened slightly against the dollar with just hours left for the BOJ to release its decision. Japan’s 10-year yield advanced six basis points to 1.055% following an NHK report that BOJ board members will discuss raising interest rates to around 0.25% on Wednesday from the current range of 0 to 0.1%.
“Given the tight relationship between the yen and Nikkei, not to mention the huge influence Japan has over global financial flows, today’s meeting could be a source of meaningful volatility,” said Kyle Rodda, a senior market analyst at Capital.Com.
Treasury yields advanced after falling in the previous four sessions. Markets are gearing up for monetary policy decisions from the Federal Reserve later Wednesday. Australian 10-year notes climbed early
