The Asian equity benchmarks ended mostly in green on Wednesday, ahead of a European Central Bank meeting. The Bank of Japan cut next fiscal year's inflation forecast and expanded a loan scheme aimed at boosting lending, hoping to deflect criticism it is sitting idly by as a slump in oil prices pushes inflation further away from its target. As widely expected, the BOJ held off on expanding its massive stimulus program and maintained its pledge to increase base money at an annual pace of 80 trillion yen ($678 billion) through buying government bonds and risk assets. In a review of its long-term estimates, the BOJ cut its core consumer inflation forecast for the year beginning in April to 1% from 1.7% projected three months ago. Japan’s All Industries Activity Index rose to a seasonally adjusted 0.1%, whose figure was revised up from -0.1%.
Malaysia cut its economic growth forecast for this year and announced a slew of austerity measures as tumbling oil prices force the government to slash spending. Prime Minister Najib Razak stated that the government’s 2015 budget, announced in October, was based on oil prices averaging $100 a barrel but this projection was no longer realistic as global crude prices have dropped by over 50%. State oil company Petronas contributes about a third of Malaysian government revenue.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,323.61 | 150.56 | 4.74 |
Hang Seng | 24,352.58 | 401.42 | 1.68 |
Jakarta Composite | 5,215.27 | 49.18 | 0.95 |
KLSE Composite | 1,770.09 | 19.98 | 1.14 |
Nikkei 225 | 17,280.48 | -85.82 | -0.49 |
Straits Times | 3,354.46 | 20.44 | 0.61 |
KOSPI Composite | 1,921.23 | 2.92 | 0.15 |
Taiwan Weighted | 9,319.71 | 68.02 | 0.74 |
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