Yen goes down on BOJ expectations
On Wednesday, the Japanese yen sagged, pressured by hopes for considerable monetary stimulus by the BOJ and amid a media report that Japan’s authorities are going to unveil a $255 billion stimulus package.
In fact, trading in the Japanese yen appeared to be choppy, with market participants taking cues from various headlines as for Japan's economic stimulus package.
The Japanese yen edged down after Japan's Fuji TV told that Prime Minister Shinzo Abe was on the verge of announcing a stimulus package on Wednesday with a headline figure of approximately 27 trillion yen.
The Japanese yen extended its sag after the Wall Street Journal informed that Japan was considering issuing 50-year bonds, though later pared some losses right after the Ministry of Finance officially denied that it was considering such an issue.
The evergreen buck last traded at 105.65 yen, showing a 1% rise on the day. The US dollar had grown by as much as 1.8% to 106.54 yen at just one point on Wednesday.
Asia stocks keep to one-year peaks
Asian stocks got to new almost one-year peaks, while the Japanese yen weakened as market participants waited for major bank meetings this week, which could see promising stimulus in Japan and offer long-awaited clues on American interest rates.
MSCI's broadest index of Asia-Pacific stocks outside Japan earned 0.2%, getting to its highest value since August 11 of 2015. Moreover, that’s a 10% rise in a month.
Japanese Nikkei earned up to 1.1%, leading the region.
By the way, there’s a near-consensus among market participants that on Friday, the Bank of Japan is going to ease on Friday, most probably by simply ramping up its already enormous purchases of government bonds as well as riskier assets.
Dropping interest rates right into negative territory has proved rather an unpopular measure with the public and the government, accordingly deepening those dips is a less likely option, as sources familiar with the major bank thinking state.