The Bank of Japan's policy decision and the governor's press conference are the primary focus for Asian markets, with analysts watching for signals about normalisation and the potential exit from negative interest rates, as recent inflation data has eased pressure on the central bank. Japanese stocks have risen roughly 10% this month, the yen has slipped back toward the 150 per dollar area, and bond yields have fallen from recent highs, reflecting traders' revised rate expectations. In contrast, Chinese and Hong Kong shares have continued to slump, with major indices hitting five-year lows in China and fourteen-month lows in Hong Kong, prompting the central bank to hold rates unchanged while state-owned banks tighten offshore liquidity and sell onshore dollars. Market attention is also drawn to forthcoming data releases from South Korea and Australia that could offer further direction.
"The article focuses on the Bank of Japan’s policy decision and governor’s press conference, directly affecting expectations for yen strength and USD/JPY movement; it also notes the yen slipping toward 150 per dollar, aligning with the positive EOD return."