Japan Stocks Fall as BOJ Refrains From Boosting Record Stimulus

Japanese stocks fell as the Bank of Japan refrained from boosting record stimulus and after the Federal Reserve kept interest rates on hold as data showed the world’s biggest economy barely grew last quarter.

Honda Motor Co. tumbled 6.7 percent and Shin-Etsu Chemical Co. slid 7 percent after reporting profit that missed estimates. Takeda Pharmaceutical Co. slumped 2.1 percent after saying it will pay $ 2.37 billion to resolve U.S. lawsuits accusing the company of hiding cancer risks from its Actos diabetes medicine. TDK Corp. gained 4 percent, the most on the Nikkei 225 Stock Average, after its dividend target beat estimates.

The Topix index lost 2.1 percent to 1,592.79 at the close in Tokyo, its biggest loss since Jan. 6, as it reopened after a holiday. All but two of its 33 industry groups fell. Volume on the measure was about 25 percent above its 30-day average. The Nikkei 225 dropped 2.7 percent to 19,520.01.

Source : Bloomberg


China’s Stock Futures Rise Amid Signs PBOC Is Boosting Liquidity

China’s stock-index futures rose amid speculation the government is taking more steps to bolster the economy and avoid a cash crunch before next month’s Chinese new year holiday.

Futures on the CSI 300 Index expiring in February gained 0.4 percent to 3,569.20 as of 9:22 a.m. Financial companies may be active after the central bank conducted its first reverse-repurchase operation in a year and rolled over a 269.5 billion yuan ($ 43.4 billion) lending facility to banks.

The Shanghai Composite Index rallied 4.7 percent to 3,323.61 yesterday, adding to the previous day’s 1.8 percent advance. The CSI 300 Index jumped 4.5 percent. Hong Kong’s Hang Seng China Enterprises Index advanced 2.4 percent to 12,021.32. . The Hang Seng Index gained  1.7 percent. The Bloomberg China-US Equity Index added 2.8 percent in New York.

The Shanghai Composite has surged 61 percent over the past year, the best performers among 93 global indexes tracked by Bloomberg, amid speculation the government will loosen monetary policy to support economic growth.

Source: Bloomberg