Both Australian and Asian stocks were seen in red on Friday, as the Australian stocks dropped from its five-year high while Japanese stocks came in mixed on Friday.
Investors were surprised by the Federal Reserve (Fed) decision over its monetary stimulus, as Asian Stocks were pushed by the new on Thursday. The week began with the news of former US Treasury Secretary Lawrence Summers withdrew as a candidate to become the next Federal Reserve (Fed) chairman.
Asian stocks exchanges were closed due to the public holidays. China, Hong Kong and South Korea did not trade of Friday..
The Japanese benchmark Nikkei 225 edged 0.16% lower at 14,743.00 on Friday, while Tokyo’s broader Topix index was rising 0.29% higher to 1,218.98.
Earlier in the day, the Bank of Japan (BoJ) governor Haruhiko Kuroda said that the country’s economy is recovering and is track to reach the 2% inflation target.”Our main scenario is that overseas economies will gradually pick up as the US and European economies improve,” he said.
“Japan’s economy is recovering moderately, as a virtuous cycle from income to spending is gradually starting to operate in both the corporate and household sectors, In addition, looking at surveys conducted on households, economists, and market participants, inflation expectations are judged to be rising on the whole. The year-on-year rate of increase in the CPI is likely to rise gradually,” he added.
The Bank of Japan (BoJ) ¥60-70 trillion into the country’s economy, with an aim to grow a total of ¥270 trillion by the end of 2014.
The bank introduced a quantitative and qualitative easing program (QQE) in April in order to achieve an inflation target of 2% in the next two years.
The Japanese yen edged up 0.18% higher at ¥99.24 against the greenback as of the time of writing.
Sydney’s major S&P/ASX 200 dropped from its five-year high, edging 0.44% lower to 5,272.40.
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