This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/technology-36156956
The article has changed 5 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Nikkei falls as Japan holds interest rates unchanged | Nikkei falls as Japan holds interest rates unchanged |
(about 1 hour later) | |
Japanese shares were down on Thursday as investors' hopes for monetary easing from the central bank were dashed. | |
The Bank of Japan held rates unchanged despite coming under pressure to take further action. | |
It had cut interest rates to negative in January but this failed to provide a much needed boost for the economy. | |
The Nikkei 225 fell by 2.9% to 16,781.69 points. New economic data also showed a slip back into deflation while industrial production expanded. | |
Japan has for years been trying to boost its economy and end a period of stifling deflation. | |
One way to try to achieve this is by monetary policy, which is one of Prime Minister Shinzo Abe's three key "Abenomics" policies to turn around the economy. | |
But even negative rates - meaning commercial banks will be charged if they deposit money with the central bank - have not trickled down to get banks to lend more and companies and people to invest or spend more. | |
Inflation is still far off the 2% target. | |
The BOJ decision to hold rates also sent the yen currency soaring, which is likely to negatively affect the crucial export sector. | |
The three arrows of "Abenomics": | |
In China, the mainland's Shanghai Composite fell 1.2% to 2,919.80 points while Hong Kong's Hang Seng was flat at 21,384.61. | |
In South Korea, the benchmark Kospi index lost 0.6% to 2002.30. | In South Korea, the benchmark Kospi index lost 0.6% to 2002.30. |
Earlier in the morning, the country's tech giant Samsung reported a 12% rise in operating profit, beating analyst forecasts. | Earlier in the morning, the country's tech giant Samsung reported a 12% rise in operating profit, beating analyst forecasts. |
In Australia, Sydney's ASX/200 defied the wider trend and rose by 0.6% to 5,218.20. |