Markets in the Asia-Pacific fell as the Bank of Japan modified its yield curve control tolerance range while holding its ultra-low benchmark interest rates steady.
In Japan, the Nikkei 225 fell another 669.61 points, or 2.5%, to 26,568.03.
The Japanese yen strengthened by more than 3% against the U.S. dollar to 132.56, marking its strongest levels in over three months.
Bank of Japan Governor Haruhiko Kuroda said the central bank will not hesitate to further ease its monetary policy if it’s necessary as the economy faces many uncertainties, he said in a press briefing.
In Hong Kong, the Hang Seng lost 258.01 points, or 1.3%, to 18,094.80, with technology and property stocks dragging down the wider index.
Minutes from the Reserve Bank of Australia’s December meeting showed that the central bank had considered a number of options for its cash rate decision, including a complete pause in hikes.
RBA board members also noted the importance of “acting consistently,” adding that the central bank will continue to consider a range of options for the upcoming year as well.
CHINA
In Shanghai, the CSI 300 shed 64.2 points, or 1.7%, to 3,829.02, as the People’s Bank of China kept its key lending rates steady.
The People’s Bank of China kept its one-year and five-year loan prime rates unchanged in December, according to an announcement.
The central bank maintained its one-year loan prime rate at 3.65% and its five-year loan prime rate at 4.30%, in line with expectations in a Reuters poll.
The offshore and onshore Chinese yuan were relatively flat at 6.9808 and 6.9783 against the U.S. dollar, respectively.
In other markets
In Taiwan, the Taiex cratered 263.29 points, or 1.8%, to 14,170.03
In Korea, the Kospi index slid 18.88 points, or 0.8%, to 2,333.29.
In Singapore, the Straits Times Index dipped 2.64 points, or 0.1%, to 3,253.97.
In Australia, the ASX 200 lost 109.6 points, or 1.5%, to 7,024.27
In New Zealand, the NZX 50 dropped 113.31 points, or 1%, to 11,404.83.
