Asian markets rose on Tuesday as dealers awaited the end of a Bank of Japan policy meeting hoping it would unveil another round of monetary easing measures.
With US markets closed because of Hurricane Sandy, there was no lead for regional investors from Wall Street but comments out of Spain and Greece brought back eurozone concerns.
Tokyo was 0.41 percent higher by the break, Hong Kong added 0.11 percent, Sydney climbed 0.30 percent, Seoul rose 0.66 percent and Shanghai was up 0.22 percent.
The consensus is that the BoJ will add at least another five trillion yen to its 80 trillion ($1 trillion) asset purchase scheme that aims to grease the wheels of the market to kickstart economic activity.
Another expansion of the scheme would follow a similar move last month — and by the United States and Europe — and comes as data continues to show the economy unable to break out of its stupor.
Earlier Tuesday official data showed factory output fell 4.1 percent last month, much worse than the 3.1 percent drop expected, with a slump in production of cars, auto parts and machinery a key cause.
“The BoJ is certainly the focus today, especially with currency markets little changed,” said Hiroichi Nishi, general manager of equities at SMBC Nikko Securities.
“Anything above 10 trillion yen in additional asset purchases will strike the market as a surprise,” he said.
In Greece the finance ministry said banks would not be able to swap greatly devalued holdings of national debt for bonds issued by the new European Stability Mechanism.
The news comes as Athens remains locked in talks with its international creditors over accessing its next tranche of rescue funds as well as over a possible extension of a timetable to initiate crucial reforms.
However, Spanish Prime Minister Mariano Rajoy reiterated his view that the debt-laden, recession-struck economy does not need a bailout — even as a ninth region made an appeal for rescue funds from Madrid.
In early Asian trade the dollar bought 79.87 yen, compared with 79.80 yen in New York late Monday.
The euro bought $1.2915, compared with $1.2900, and 103.15 yen, up from 102.95 yen.
On oil markets New York’s main contract, West Texas Intermediate for delivery in December, was down 28 cents at $85.26 a barrel in the morning, while Brent North Sea crude for December fell 46 cents to $109.09.
Gold was at $1,709.90 at 0300 GMT compared with $1,712.20 late Monday.
Source: AFP
