Stocks across Asia and Europe rose during early trading on Tuesday after the Bank of Japan (BOJ) decided to keep its interest rates unchanged. The Japanese yen slumped 1.3% to a one-week low against the US dollar while global treasuries declined as well, with US Treasury 10-year yields sliding by about two basis points.
“The BOJ stance encouraged speculators to sell the yen, and there’s relief that yields in Japan aren’t likely to to to jump higher,” observed Lee Hardman, a strategist at MUFG Bank Ltd. Hardman added that
Japan’s Nikkei 225 equity index surged to a two-week high, while Europe’s Stoxx 600 index gained 0.3%. The MSCI Asia Pacific Index remained relatively unchanged. The BOJ’s contentment with keeping rates unchanged echoes the tones of the Federal Reserve and the European Central Bank, however, all three are expected to introduce rate cuts at various points throughout the next year.