Asian stocks drop on BOJ’s status-quo, commodities sell-off

The stocks on the Asian indices were hit by a renewed selling wave after the BOJ kept rates on-hold and hinted at no further easing at its monetary policy decision announced earlier on the day. While widespread cautiousness heading into the Fed decision tomorrow also keeps the equities under pressure.

Yen gains on hawkish BOJ, Nikkei slips

The Japanese benchmark index, the Nikkei 225 drops nearly 1% to 17,076 points, mainly on the rising demand for yen, which weighs heavily on the export-oriented stocks. While sentiment also soured after BOJ’s removal of the language from its statement that it would cut interest rates further into negative territory if needed.

Rest of Asia also followed suit, with the Australian markets deep in the red amid broad based commodities sell-off. The benchmark ASX 200 index closed down -1.43% at 5,111 points. The Shanghai Composite slides nearly 1%, Shenzhen’s CSI300 slips -0.88% and China A50 shares also lose -0.77%.

The stocks on the Asian indices were hit by a renewed selling wave after the BOJ kept rates on-hold and hinted at no further easing at its monetary policy decision announced earlier on the day. While widespread cautiousness heading into the Fed decision tomorrow also keeps the equities under pressure.

(Market News Provided by FXstreet)