Asian equities dropped, weighed down by losses in China and Hong Kong, while the yen slumped against the dollar as the Bank of Japan delayed a decision on its bond buying plan.
Japanese stocks rallied, with the Topix Index rising as much as 0.9%. The yen weakened past the 158 per dollar mark after the Bank of Japan said it will specify a plan for bond purchases at the July meeting, pushing back reductions in buying until at least then.
It held the benchmark rate in a range between 0% and 0.1%. Japan’s bond futures surged. “They are kicking the can down the road and honestly, not announcing anything itself is a risk for the market,” Polka Mishra, partner at Javelin Wealth Management Pte Ltd., said on Bloomberg TV.
Mishra said she “still remains positive on Japanese equities” as the “long-term story in Japan remains strong.”
