Japanese stockmarkets closed more than 3 per cent lower after the Bank of Japan kept monetary policy unchanged.
The central bank’s statement noted interest rates were voted to remain at -0.1 per cent by a majority of seven to two, while the decision to keep its QE programme unchanged was passed by a majority of eight to one.
As a result the Nikkei 225 index closed 3.6 per cent lower, while the Topix index fell 3.2 per cent.
Meanwhile in the US the latest statement from the Federal Open Market Committee (FOMC) also left interest rates unchanged, although the removal of a sentence referring to the risks of global economic and financial developments has raised the possibility a rate rise could come sooner than some expected.
David Buckle, head of quantitative research at Fidelity International, said the statement continues to suggest any decision by the US Federal Reserve remains data dependent.
But he added: “In my view June is a live meeting. I favour a rise at that meeting, but a few negative data points in the meantime would cause the Fed to delay. After all, the hurdle to raise is high. This statement merely gives the option to raise rates.”
The Dow Jones index closed last night’s trading 0.3 per cent higher, while the S&P 500 index also gained a modest 0.2 per cent.
