A record-breaking global stock rally hit a speed bump after the Bank of Japan’s decision to begin selling its massive exchange-traded fund holdings dragged Asian shares lower.
The MSCI Asia Pacific Index slipped 0.4% while the Nikkei-225 Stock Average dropped about 0.7%. Asian shares had opened higher after four key US equity benchmarks closed at all-time highs in unison for the first time since November 2021.
Gold gained and Treasuries inched lower. Equity-index futures for US and Europe also edged down. Japanese stocks reversed earlier gains after the BOJ unveiled a plan to sell ETFs at a scale similar to the disposal of stocks bought from banks in the 2000s.
The central bank kept its policy rate at 0.5%, as expected, after a 7-2 vote. The yen rose 0.3% against the dollar and the nation’s two-year bond yields climbed to the highest since 2008.
“The dissenters are a strong signal that the BOJ will be hiking once political uncertainty is removed,” said Rodrigo Catril, a strategist at National Australia Bank Ltd.
