JAKARTA (TheInsiderStories) – A number of global authorities decisions have resulted in mixed movements in the global markets today, Friday (9/3).
Today, the Bank of Japan left its easing policy unchanged and offered no new clues on when and how it might join other major central banks in winding down its measures as Haruhiko Kuroda heads toward a second five-year term as governor.
The Japanese central bank voted 8-1 to maintain its target for 10-year Japanese government bond yields at around zero and its short-term deposit rate at minus 0.1 per cent, extending its holding pattern on its current policy settings to a year and a half.
The decision leaves Tokyo Stock Exchange Japan closed in the positive zone today. The Nikkei 225 index gained 0.47 per cent or 101.13 points to 21,469.20.
The potential meeting between the leaders of the U.S. and North Korea, news of which came before most Asian stock markets opened for trading, followed an invitation in a letter from North Korea’s leader Kim Jong Un that was delivered to the White House by South Korea’s national-security adviser.
Kim Jong Un also reaffirmed that he was prepared to suspend nuclear and missile tests while North Korea engages in talks on the denuclearization of the Korean Peninsula.
Meanwhile, after a week of hints and uncertainty, U.S President Donald Trump said Thursday he would announce tariffs on imported steel and aluminum but with temporary exemptions for Canada and Mexico as he seeks to revise the North American Free Trade Agreement.
Some analysts say the tariff announcement should have less impact than initially feared given both Mexico and Canada have been exempted. Others could also receive exemptions over time. U.S. stocks rallied into the close as firm details were released ahead of the closing bell there, though steel companies there fell more than 2 per cent.
The global market’s focus will turn somewhat toward Friday’s U.S. jobs report, with wage growth again to be closely scrutinized for signals of possible future inflation in America. U.S may have added 220,000 new jobs in February, the authority will hold a report on Friday 8.30 U.S’s time.
Indonesia former Finance Minister Chatib Basri warns global financial market, Indonesia particularly, to be prepared on Fed’s hike in March.
The Fed is widely expected to raise rates when policymakers next meet March 20-21; markets currently expect two more rate hikes by year end, exactly the pace the Fed forecast when it last released projections in December.
Despite the weakening of the rupiah in recent months, Finance Minister Sri Mulyani Indrawati has stressed that Indonesia’s fundamental economy was strong enough to face global uncertainty, particularly the United States Federal Reserve’s plan aggressively increase its reference rate.
Some parameters have shown that Indonesia’s macroeconomic condition is currently much better than in 2017, the minister said.