Asia-Pacific stocks ended a week's winning streak and fell broadly in early trading on Thursday as markets awaited the results of the Bank of Japan's interest rate meeting and first-quarter GDP data from the United States and South Korea.
South Korea's GDP grew 3.4% year-on-year in the first quarter, the highest quarterly growth rate since the fourth quarter of 2021.
Separately, the Bank of Japan will hold a monetary policy meeting on Thursday, and investors are focused on actions against the weakness of the yen. The Japanese yen fell below the 155 mark against the dollar on Wednesday, hitting a new 34-year low.
Here's what was updated at 14:03:
The Nikkei 225 index closed down 2.16%, ending a three-day winning streak.
In terms of individual stocks, Canon fell more than 8%, Matsu fell nearly 5%, and Hitachi, Toyota, and Tokyo Electron fell more than 3%.
In the afternoon, the yen extended its decline against the dollar and is now trading at 155.64 yen per dollar.
Da Mo analysis warned that tomorrow's Tokyo CPI data may hit the yen again and deepen traders' views that the Bank of Japan's monetary easing will continue, thereby increasing the pressure on the yen to depreciate.
Here's what's up at 10:25:
Asia-Pacific stock markets were broadly lower
The MSCI Asia Pacific Index fell 1%, Japan's Nikkei 225 Index fell 1.8%, the Topix Index fell 1.4%, and South Korea's Kospi Composite Index also fell 1.12%. The Australian and New Zealand markets are closed for public holidays.
For the first time in 34 years, the yen fell below 155
The yen continued to weaken on Thursday, with USD/JPY briefly rushing to 155.44. This is the first time since June 1990 that the yen has fallen below 155. The Bank of Japan kicked off its two-day policy meeting, leaving traders nervous about whether Japan would intervene in foreign exchange during the meeting.
Win Thin, head of global market strategy at Brown Brothers Harriman, said: "Regardless of the level of intervention, the risk of intervention remains high. ”
Japanese Finance Minister Shunichi Suzuki has repeatedly said earlier that if necessary, actions will be taken to address the excessive volatility of the yen.
The yen has fallen about 9% so far this year, making it the worst-performing currency in the G10 group, and despite the BOJ's modest rate hike in March, the yen remains at risk of rising oil prices due to heightened tensions in the Middle East, which could hurt Japan's trade balance.
Traders and strategists are awaiting the end of Friday's BoJ policy meeting, with almost all economists expecting the BoJ to keep monetary policy unchanged.
Bank Indonesia unexpectedly raised interest rates by 25 basis points yesterday
USD/IDR retreated slightly from yesterday's high in early trading on Thursday and is now up 0.31%. The rupiah has been hovering around 16,000 since falling to a four-year low last week.
After raising interest rates by 25 basis points more than expected yesterday, Bank Indonesia raised its benchmark interest rate to 6.25%, compared to market expectations of 6%, the first rate hike this year. Bank Indonesia Perry Warjiyo said at a press conference that the decision to raise interest rates was a "preemptive, forward-looking move" aimed at stabilizing the rupiah's exchange rate, saying it would continue to use all available tools to keep the rupiah stable.
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