Asian markets (AAXJ) were trading lower at the start of the week today, scheduled for two major monetary policy releases. The US Fed is scheduled to release its monetary policy on Wednesday while the Bank of Japan or BoJ will do the same on April 28. The policies are expected to be divergent, with the Fed expected to give a more hawkish view while the BoJ has to ensure that the Japanese yen doesn’t keep appreciating. The BoJ is expected to have a dovish view about further easing measures.
The Japanese (DXJ) Nikkei 225 had been on an upward trend over the past week with the expectation of further easing from the BoJ, but today we saw slight weakness in the index. The Japanese index fell 0.76%. The fall was also due to the release of the February leading economic index at 96.8 against the forecast of 99.8. The Chinese (MCHI) DJ Shanghai index fell 0.50% today.
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