SINGAPORE - Asian shares rose cautiously on Friday as markets sobered up to the idea that U.S. rate cuts were most likely some time away, while the yen and Japanese government bonds struggled ahead of a closely watched policy decision by the Bank of Japan.The highlight of the Asia day was on the BOJ's rate decision at the conclusion of its two-day monetary policy meeting, as well as Governor Kazuo Ueda's news conference thereafter.
Although expectations are for the BOJ to maintain its accommodative monetary policy stance, focus will be on whether the central bank makes any adjustments to its bond buying amounts - seen as a way to deliver a more hawkish stance without an outright rate rise. "There is a near consensus that the BOJ will stand pat on its policy rate today, though it could signal an impending reduction in JGB purchases in the future," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets. "I expect Ueda to remain noncommittal on the timing of the next rate hike, but he could repeat his previous point that the bank would consider the impact of exchange rates on inflation.
Sterling dipped 0.09% to $1.2502 after touching a two-week high on Thursday, while the euro edged 0.04% lower to $1.0726. (