Stocks in Asia traded higher on Tuesday as the Bank of Japan begin its two-day meeting and China’s stocks dropped after the country’s central bank added funds into the financial system on Monday.
In Japan, the benchmark Nikkei 225 index rallied 1.03% to 15, 802.85, while Tokyo’s Topix index climbed 0.38% to 1,298.81 points as the BOJ began its two-day meeting to review its monetary policy. The Japanese yen weakened against the greenback on Tuesday, heading towards the ¥104.5 mark.
Hong Kong’s Hang Seng rose 0.38% higher to 23,015 points at the time of writing, while South Korea’s Kospi index gained 0.02% to 1,954.21 points at the same time.
China’s benchmark Shanghai Composite edged up 0.2% to 1,995.22 points, after the People’s Bank of China (PBoC) added funds into the financial system on Monday.
The Bank of Japan (BoJ) began its two-day meeting earlier today to review its semi-annual economic outlook and it’s expected to maintain its forecast for the core consumer price index to increase by 1.9% in fiscal 2015. The bank is also expected to keep its fiscal 2015 target of 2% inflation.
Board members are expected to discuss the possible impact after the tax hike in April. The BoJ is expected to keep its outlook for the gross domestic product growth of 2.7% for the current year through March, 1.5% in both fiscal 2014 and fiscal 2015.
“The two-day meeting of the Bank of Japan’s Policy Board, which concludes on Wednesday, is unlikely to result in any significant changes to the asset purchase programme,” analysts from Capital Economics said in a note.”
China’s mainland Shanghai Composite Index climbed 0.6% higher. China’s seven-day reverse re-purchased rate declined 5.16% lower. The nation’s central bank is expected to conduct 180 billion yuan of 21-day and 75 billion yuan of seven-day reverse repurchase deal today.
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