The Japanese central bank said it would loosen its grip on yields and allow those on certain government bonds to move in a wider band.
“Speculation over BoJ policy has helped strengthen the yen, exacerbating fears about worsening profitability, which prompted sell-offs among the export sector including automakers and manufacturers”, IwaiCosmo Securities said in a note. The BoJ will hold a two-day meeting later this week, with traders speculating on whether it could further tweak its policy.
At the moment, “there are many investors uncomfortable with buying shares, even cheap ones, before seeing the result of the BoJ meeting,” Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP. Among major shares in Tokyo, SoftBank Group lost 1.31 percent to 5,846 yen, Sony Group slid 1.00 percent to 10,855 yen, and Uniqlo operator Fast Retailing plunged 1.95 percent to 72,050 yen.Subscribe to our newsletter