Asian stocks up, yen dips as BOJ keeps ultra-low rates

Asian stocks rose on Friday as strong corporate earnings lifted sentiment despite lingering worries over economic weakness, while the yen dipped after the Bank of Japan kept rates ultra-low even as it announced a broad review of monetary policy.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was 0.45% higher but remained on course to end the month lower.

Japan’s Nikkei (.N225) jumped 1% while the yen weakened 0.60% to a one-week low of 134.76 per dollar and Japanese government bonds rallied.

The BOJ kept its loose monetary settings unchanged but revamped its guidance on the future path of policy, and announced a “broad-perspective” review of its monetary policy.

The central bank in its first meeting under new governor Kazuo Ueda modified its forward guidance by removing a pledge to keep interest rates at “current or lower levels.”

“The wait for the announcement sparked quite a bit of volatility in the yen and rising expectations that we will get a tweak,” said Charu Chanana, a market strategist at Saxo Markets in Singapore.

This report’s information was first seen on REUTERS; to read more, click this link.