{"id":63897,"date":"2023-12-19T17:36:10","date_gmt":"2023-12-19T06:36:10","guid":{"rendered":"https:\/\/icmarkets.com.au\/blog\/?p=63897"},"modified":"2025-11-10T18:10:32","modified_gmt":"2025-11-10T07:10:32","slug":"tuesday-19th-december-2023-asian-markets-react-strongly-to-boj-decision-global-indices-follow-suit","status":"publish","type":"post","link":"https:\/\/www.icmarkets.com.au\/blog\/tuesday-19th-december-2023-asian-markets-react-strongly-to-boj-decision-global-indices-follow-suit\/","title":{"rendered":"Tuesday 19th December 2023: Asian Markets React Strongly to BoJ Decision, Global Indices Follow Suit"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><br \/>Global Markets:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&nbsp;Asian Stock Markets : Nikkei up 1.32%, Shanghai Composite down 0.44%, Hang Seng down 0.9% ASX up 0.84%<\/li>\n\n\n\n<li>Commodities : Gold at $2037.5 (-0.17%), Silver at $24.13 (0.04%), Brent Oil at $78.06 (0.12%), WTI Oil at $72.77 (0.03%)<\/li>\n\n\n\n<li>Rates : US 10-year yield at 3.946, UK 10-year yield at 3.724, Germany 10-year yield at 2.076<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">News &amp; Data:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>(CAD) NHPI m\/m -0.2% vs 0.1% expected<\/li>\n\n\n\n<li>(USD) NAHB Housing Market Index 37 vs 36 expected<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Markets Update:<\/h3>\n\n\n\n<p>The Nikkei 225 index surged by over 1% in response to the Bank of Japan&#8217;s decision to maintain its main policy rate at -0.1%. The central bank opted to uphold both its negative interest rate policy and yield curve control stance while expressing concerns about uncertainties within Japan. Predicting core inflation to stay above 2% through fiscal 2024, the BOJ&#8217;s decision prompted a 0.5% weakening of the yen against the dollar, settling at 143.50.<\/p>\n\n\n\n<p>Shigeto Nagai, head of Japan Economics at Oxford Economics, foresees the BoJ potentially ending the negative interest rate policy by April, contingent on a robust spring wage settlement. However, post-NIRP cessation, the BoJ is expected to maintain an effective zero-interest rate policy for several years, shaping the inflation trajectory.<\/p>\n\n\n\n<p>The Reserve Bank of Australia debated a 25 basis point rate hike but ultimately held rates steady at 4.35%. Australia&#8217;s S&amp;P\/ASX 200 rebounded to 7,489.10, recovering after a six-day winning streak interruption.<\/p>\n\n\n\n<p>In Asia, South Korea&#8217;s Kospi remained stable, while the Kosdaq surged 0.69%, marking its highest level since September 22. Conversely, Hong Kong&#8217;s Hang Seng index fell 0.9%, and mainland China&#8217;s CSI 300 held steady.<\/p>\n\n\n\n<p>Overnight in the US, the S&amp;P 500 and Nasdaq Composite gained 0.45% and 0.61% respectively, while the Dow Jones Industrial Average saw little change. Presently, the S&amp;P 500 stands just 1.2% below its all-time high set in January 2022 at 4,796.56.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Upcoming Events:&nbsp;<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>1:30 PM GMT &#8211; CAD CPI m\/m<\/li>\n\n\n\n<li>1:30 PM GMT &#8211; CAD Median CPI y\/y<\/li>\n\n\n\n<li>1:30 PM GMT &#8211; CAD Trimmed CPI y\/y<\/li>\n\n\n\n<li>1:30 PM GMT &#8211; CAD Common CPI y\/y<\/li>\n\n\n\n<li>1:30 PM GMT &#8211; CAD Core CPI m\/m<\/li>\n\n\n\n<li>1:30 PM GMT &#8211; USD Building Permits<\/li>\n\n\n\n<li>1:30 PM GMT &#8211; USD Housing Starts<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Global Markets: News &amp; Data: Markets Update: The Nikkei 225 index [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":74214,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[196,215,339],"tags":[],"class_list":["post-63897","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fundamental-analysis","category-market-analysis","category-recent-posts"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/posts\/63897","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/comments?post=63897"}],"version-history":[{"count":2,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/posts\/63897\/revisions"}],"predecessor-version":[{"id":63899,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/posts\/63897\/revisions\/63899"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/media\/74214"}],"wp:attachment":[{"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/media?parent=63897"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/categories?post=63897"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/tags?post=63897"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}