The Tokyo stock exchange closed trading with a heavy loss on Friday. Investors reacted to the decision of Japan’s central bank to maintain its ultra-moderate monetary policy for the time being.
The decision of the Bank of Japan (BoJ) is in stark contrast to that of other central banks worldwide. Earlier this week, the US Federal Reserve and the central banks of Switzerland and the United Kingdom raised interest rates to curb high inflation.
Following the BoJ’s decision, the yen weakened more than 1.5 percent against the dollar. The Nikkei lost 1.8 percent and closed at 25,963.00 points. That was partly due to the loss of heavyweight SoftBank. The tech and media conglomerate lost more than 4 percent of its stock market value.
The Hang Seng index in Hong Kong recovered from previous losses and gained 0.8 percent. The mood in mainland China was also positive. Shanghai also posted a gain of 0.8 percent, and Shenzhen rose 1.2 percent. Meanwhile, China’s budget deficit has risen to its all-time high. In the first five months of the year, spending rose sharply due to the corona outbreaks and the tax cut to stimulate the economy. The latter has also brought some relief to investors lately.
In Taiwan, chip maker TSMC lost 1.4 percent of its market value. The company says it will have access to the latest EUV chip machines from the Dutch chip machine maker ASML from 2024.
The Kospi in Seoul fell 0.7 percent and sentiment was negative in Australia too. The All Ordinaries lost 1.8 percent there.