Asia stocks gain before FOMC, yen rises on warning: Markets wrap

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Spot gold fell 0.3% to $1 977.04 an ounce.

Shares in Asia traded broadly higher ahead of Wednesday’s Federal Reserve decision. The yen strengthened from near its weakest level this year after Japan’s foreign exchange chief said he was on standby for intervention.

The Bank of Japan announced unscheduled bond-purchase operations to curb gains in yields following its policy decision. The 10-year Japanese government bond yield touched a fresh decade high of 0.97% after the BOJ on Tuesday said it will take a more flexible approach to controlling rates on 10-year government debt.

The yen extended gains Wednesday after Japan’s chief currency official Masato Kanda said authorities see some moves that aren’t in line with fundamentals and are on standby to intervene if needed.

 

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