Market Commentary - Foreign Markets
Asian stocks close higher after central banks policy moves, Nikkei ends 1.67% higher As on : 20-Sep-24  15:41

The Japanese market outperformed despite paring some gains after the Bank of Japan decided to hold rates unchanged. The Nikkei 225 ended up 619.00 points or 1.67% at 37,739.50.

Tokai Carbon, Resonac Holding Corp, Kawasaki Heavy Industries, Tokyo Electron, Fujikura, Mitsui, Fast Retailing, Furukawa Electric, Fanuc Corp, Sumco Corp and Mitsubishi UFJ Financial were among the major gainers in the Japanese market.

NTT Data Corp, Kansai Electric Power, Keisei Elecgric Railway, Shimizu Corp., Taisei Corp and Tobu Railway were among the notable losers.

The Bank of Japan maintained its benchmark rate unchanged as widely expected on Friday.

In a unanimous vote, the Policy Board decided to maintain the uncollateralized overnight call rate to remain at around 0.25 percent.

The BoJ had ended its negative interest rate policy in March.

In the statement, the BoJ said the economy has recovered moderately, although some weakness has been in part.

Data from the Ministry of Internal Affairs & Communications said the annual inflation in Japan rose to 3% in August (the highest level since October 23) from 2.8% in the prior three months.

On monthly basis, the CPI rose by 0.5% in August, after a 0.2% increase in July.

The core consumer price index in Japan increased by 2.8% year-on-year in August, the highest reading since February.

Asian stocks closed broadly higher on Friday, although most of the markets in the region turned a bit subdued and pared early gains as the day progressed. The undertone remained positive with investors continuing to cheer the Federal Reserve's decision to cut interest rates by 50 basis points.

Powered by Capital Market - Live News