The BoJ unexpectedly stood pat on its current interest rate and monetary base
It was a mostly lower finish in Asia today, as stocks reacted to falling oil prices and a disappointing stimulus announcement from the Bank of Japan (BoJ). Hong Kong's Hang Seng suffered the worst of its regional peers, shedding 1.3%. China's Shanghai Composite, meanwhile, dropped 0.5%, while South Korea's Kospi gave back 0.2% after industrial production unexpectedly fell in June.
In Japan, the Nikkei initially plunged 1.7% as the yen and 10-year bond yields jumped after the BoJ said it would stand pat on its current interest rate and monetary base -- contrary to
speculation sparked by recent reports. However, the Tokyo-based index eventually settled the session up 0.6%, as the central bank nearly doubled its exchange-traded fund (ETF) purchasing program. Separately, Japan said consumer prices edged lower for a fourth straight month in June.
European stocks are mixed at midday, as traders digest
the latest batch of earnings data and a report that showed eurozone growth eased in the second quarter, but arrived in line with estimates. Banks are outperforming ahead of the European Bank Authority's stress test results, due later today. At last check, the German DAX is up 0.3% and the French CAC 40 is 0.04% higher, while London's FTSE 100 is off 0.1%.
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