(menafn – ecpulse)
As volumes returned to normal on Tuesday, stocks in Asia dropped, with the MSCI Asia Pacific Index falling 0.4% at 13:28 in Tokyo, after BoJ kept interest rates unchanged, while China witnessed an unexpected trade surplus.
BoJ kept the key interest rate unchanged between 0.0% and 0.10% and held back from additional easing measures; meanwhile no policymaker proposed additional stimulus after the economy has shown some signs of recovery.
This increased the appeal of the yen as a safe haven investment, adding to the downside pressures on equities, as it could damage demand on exports and lower the outlook for earnings.
Meanwhile, China reported an unexpected trade surplus in March after import growth eased from a 13-month high. This data along with Monday’s jump in inflation is damping even more the chances for additional monetary easing.
Investors are still seen cautious since the downbeat US jobs data on Friday, which determined the Federal Reserve Chairman Ben Bernanke to confirm on Monday that the US economy is “far from having fully recovered”.
Data today will include Germany’s trade balance for Feb. and the US’s wholesale inventories; meanwhile in Australia the business confidence improved in March from the previous month, as conditions also improved last month.