Shares in Asia on Friday advanced after Wall Street rallied to its best day since January and the Bank of Japan (BOJ) kept its ultra-lax monetary policy unchanged.
In its first policy meeting under its new governor, Kazuo Ueda, the BOJ kept its key policy rate at minus-0.1 percent even as Japan reported inflation excluding volatile fresh food costs was at 3.5 percent last month.
Japan’s central bank has overshot its inflation target of 2 percent, but expects conditions to worsen since the US and other major economies are thought to be headed for recession.
Photo: AFP
“With extremely high uncertainties surrounding economies and financial markets at home and abroad, the bank will patiently continue with monetary easing, while nimbly responding to developments,” the BOJ said in a statement.
The central bank did remove its “forward guidance” that pledged to keep key policy interest rates at current or lower levels. It said it would needs up to 18 months to conduct a review of monetary policy guidance.
In Taiwan, the TAIEX closed up 167.69 points, or 1.09 percent, at 15,579.18, down 0.15 percent from a week earlier. Turnover totaled NT$222.21 billion (US$7.23 billion).
Tokyo’s Nikkei 225 added 1.4 percent to 28,856.44, up 1.02 percent for the week, while the broader TOPIX gained 1.23 percent to 2,057.48, up 1.1 percent weekly.
In Hong Kong, the Hang Seng rose 0.27 percent to 19,894.57, down 0.9 percent weekly, and the Shanghai Composite surged 1.14 percent to 3,323.27, adding 0.67 for the week.
In Seoul, the KOSPI edged 0.23 percent higher, to 2,501.53, but fell 1.68 percent weekly, while Australia’s S&P/ASX 200 added 0.23 percent to 7,309.2, down 0.29 percent for the week, and India’s SENSEX rose 0.76 percent to 61,112.44, up 2.44 percent weekly.
Additional reporting by staff writer, with CNA
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