(MENAFN- Daily Forex) By: DailyForex.com
Asian shares hovered near decade highs on Thursday morning, supported by strong U.S. corporate earnings and optimism about Japanese and European central bank meetings later today. The Bank of Japan is expected to end its two-day policy meeting with an intention to cut its inflation forecasts again and to project a delayed cutback of its economic stimulus program. If the stimulus program is delayed it would be the sixth time it was postponed since it was proposed by BOJ Governor Haruhiko Kuroda in 2013. Analysts expect the BOJ to confirm that there is no need to ease policy at the moment because the continually strengthening economy can increase consumption and price increases on its own.
is expected to establish the foundation for a policy shift in the fall which ECB President Mario Draghi hinted to last month in a surprisingly hawkish announcement. Analysts are nervous to see how banks will reposition themselves once low-cost borrowing is not available.
South Korea's Kospi index was up 0.07 percent and Shanghai's Hang Seng index was up 0.04 percent, while Australia's ASX 200 was the leader in early trade, trading up 0.53 percent. MSCI's broadest index of shares outside Japan was up .15 percent, hovering near highs not seen since December 2007.
The currency markets were relatively stable early on Thursday though the dollar continued to struggle against the yen and was trading at 111.90 yen as of 10:18 a.m. HK/SIN. The euro was also up against the dollar, trading at $1.1523. The dollar index remained stable, trading at 94.762 .DXY.
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