The Bank of Japan kept the interest rates negative at minus 0.1% and the target government bond yields to 10 years at 0%.
The bank also will continue to buy government bonds at an annual rate of 80 trillion yen.
The central bank interest rate announcement stated that the Japanese economy continues to recover at a moderate pace but raised economic forecasts regarding exports and industrial output.
The Japanese yen weakened by 0.4% against the US dollar to 116 yen to the dollar, a high of ten months.
This is due to investors’ expectations for higher interest rates in the US on Wednesday.
The last trading day for this week in Asia is conducted with price declines and one of the reasons for the decline in Japan is the local currency which is strengthening against the US dollar.
The Asian stock markets trading is conducted today (Tuesday) with a mixed trend after the negative locking yesterday on Wall Street.
The Japanese Nikkei Index going down at the background of the strengthening of the Japanese yen.
Asian markets are trading this morning with a mixed trend.
The Nikkei index stands out positively in light of the weakness of the Japanese Yen.
Last night the trading on Wall Street ended in a positive trend.
The Euro and the pound are falling by 0.9% against the US dollar, who is parallel by 1.1% against the Japanese yen.
The trading on the Asian stock markets conducted with a mixed trend, at the background of mixed macroeconomic data in China which weigh down the trading, while weakening the Japanese yen that benefited the Japanese exporters and the Tokyo Stock Exchange.
China National Statistics Office published today that retail sales in October increased by 10% compared to October 2015, but a drop compared to the 10.7% increase in September.
Another data pointed of a growth of 6.1% in industrial output – a figure identical to that published last month, but it was short compared to the economists’ forecasts.
The foreign exchange market:
The US dollar stays unchanged against the Euro and traded at a rate of 1.0890 dollars to the Euro.
The dollar falls by 0.5% versus the Japanese yen, and traded at a rate of 106.29 yen to the dollar.
The British pound jumps up versus the dollar by 0.7% and trades in the exchange of 1.2636 dollars to the pound.
Currencies:
The Euro lost 0.7% against the US dollar to 1.105 dollar.
The British pound falls to 0.8% against the US dollar and the Japanese currency versus the US dollar jumps by 1.3%.
Forex trading:
The US dollar is going down against most of the currencies of the developed economies.
The US dollar retreated against the Japanese yen by 0.4%, and against the Swiss franc it falling by 0.2%.
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