Japan Stocks Erase Early Losses as Investors Await BOJ Decisionby and
A narrow majority of economists expect expanded stimulus
Federal Reserve also decides on interest rates on Wednesday
Shares in Tokyo erased earlier losses as investors braced for the Bank of Japan’s highly anticipated monetary policy meeting.
The Topix index rose 0.1 percent at 12:58 p.m., after falling as much as 0.6 percent. Investors are awaiting the outcome of the BOJ’s comprehensive policy review that may set the future course of the country’s unprecedented monetary stimulus program. The Federal Reserve will also give its decision on whether to raise interest rates on Wednesday, with futures markets seeing a chance of just 22 percent that it will act.
“When it comes to the BOJ this time, it’s impossible to tell what they’ll do,” said Ayako Sera, a Tokyo-based market strategist at Sumitomo Mitsui Trust Bank Ltd. “Whatever action they decide to take, it’ll take time to digest.”