Eurozone economy expected to have grown 0.3 pct

In Tokyo share trading, Toyota tumbled 6.80 percent to close at 5,710 yen, rival Nissan fell 5.81 percent to 928 yen, Subaru maker Fuji Heavy Industries plummeted 9.03 percent to 3,472 yen, and Honda was down 5.50 percent to 2,736.5 yen. That’s short of the rebound many European markets are enjoying. Sony Bank, which only offers online banking, will reduce its interest rate for ordinary savings accounts to 0.001 percent, meaning that a deposit of 1 million yen in an ordinary savings account for a year will earn the account holder just 10 yen in interest. Hong Kong’s Hang Seng Index HSI, -0.98% was last down 0.5% at 18452.44, on track for its lowest close since mid-2012.

The euro was quoted at $1.1288-1290 and 126.61-65 yen against $1.1317-1327 and 127.23-33 yen in NY.

Stocks lost further ground Friday following the yen’s sharp ascent and overnight plunges in stock markets overseas, with the benchmark Nikkei average closing below 15,000 for the first time in almost 16 months. The Kosdaq benchmark was last off by 6.4%.

“The market is saying we’re anxious no matter what (Federal Reserve Chair Janet) Yellen says and their reaction shows there can be no real relief until we can truly see what’s happening in the USA economy”. Still, “the tone in Asia has generally been downbeat”. In Japan, Weston noted that volumes were up 120% above the 100-day average.

“I am very nervously watching these moves and will take appropriate steps as necessary”, Japanese Finance Minister Taro Aso said Friday, triggering speculation that Tokyo may resort to selling the yen to prevent a strong currency from hurting the export-reliant economy.

Mainland Chinese markets and Taiwan remained closed for the week.

The yen and government bonds tend to appreciate in times of economic uncertainty.

The Best’s Briefing, titled, “Bank of Japan’s Introduction of Negative Interest Rates Further Challenges Insurers”, states that the BOJ’s application of a negative interest rate of -0.1% on a portion of the excess reserves it holds will drive Japanese government bond (JGB) yields lower and increase volatility.

The price of oil fell almost 9 per cent back towards $30 a barrel. “The bold venture into negative interest rates signals to market participants that central banks will use all tools at their disposal to meet inflation targets”, adds Tahiri. Gold jumped 4.5 percent.

Brent crude, a benchmark for worldwide oils, gained $1.46 to $31.52 a barrel in London.

“The most infuriating thing is that central banks think they control the world, and in reality they’ve failed miserably”, Kelly told Business Insider.

That’s the case also with USA stock markets, even though they are also making gains Friday.

Japanese banks saw steep losses, with Mitsubishi UFJ down 2.2%, SMFG lower by 4.1%, Mizuho Financial shedding 3.7% and Nomura falling 9.2%.

On Friday, telecommunication and consumer shares pulled down the Japanese market, with the sectors off 5.1% and 4.5% respectively. He said the BOJ’s recent adoption of negative interest rates was raising concerns about the profitability of banks, leading to selloffs in their stocks.

The broader Topix dropped 5.4 per cent to 1,196.28 and the JPX-Nikkei Index 400 fell 5.6 per cent to 10,780.40.