JStocks rebounded as traders shifted focus to the Bank of Japan’s press briefing and the potential for the Federal Reserve to turn dovish later Wednesday.
Financial shares led gains in the Topix index after the Bank of Japan raised interest rates to around 0.25%. The MSCI benchmark for Asian shares jumped more than 1.5%.
US equity futures advanced with expectations that Chair Jerome Powell may signal a potential rate cut in September. The action-packed day created gyrations across markets as traders digested the BOJ’s decision and geared up for the Fed.
The yen fluctuated before trading 0.2% weaker against the greenback. Treasury yields stabilized after falling in the previous four sessions, while a Bloomberg gauge of dollar strength edged lower.
“Ueda’s conditions for further tightening in interest rate and JGB purchases will be key points to watch during his afternoon conference,” said Homin Lee, a senior macro strategist at Lombard Odier.
