Japan Cabinet OKs new stimulus package to pump up growth

As of 11:50 BST dollar/yen was retreating 0.61% to 101.7670. But may also stem the selling seen in the materials and energy space as they benefit from a weaker United States dollars boosting commodity spot prices. Electric vehicle maker Tesla Motors agreed to buy solar panel maker SolarCity, but both stocks are trading lower.

Disappointment over Japan’s much-hyped stimulus package and falling oil prices weighed on investor interest in Asia on Tuesday, sending stock markets broadly lower.

Oil rose more than two per cent in early trading after falling by around $4 a barrel in one week. Japan’s Nikkei .N225 lost 1.4 percent as the rising yen pressured exporter stocks while financials slid 2.7 percent.

The Australian dollar fell to as low as $0.7490 and Y76.78, respectively from $0.7535 and Y77.16.

SYDNEY – Asian shares fell on Wednesday while the yen lorded over a weakened USA dollar as the fear that the Bank of Japan (BoJ) may retreat from its huge bond-buying campaign added to a shakeout in debt markets globally.

Trading in Hong Kong was suspended for the day as Typhoon Nida swept through the city, shutting down most of the financial hub. The Reserve Bank of Australia lowered its benchmark lending rate to a record 1.5% at a meeting Tuesday in a decision predicted by 20 of 25 economists.

While central banks and governments around the world are bolstering stimulus to shore up growth, Japan’s announcement yesterday that it would boost spending by ¥4.6 trillion (RM182.25 billion) came about a week after Prime Minister Shinzo Abe flagged a ¥28 trillion stimulus package in a bid to jumpstart Asia’s second-largest-economy.

“With this package, we’ll proceed to not just stimulate demand but also achieve sustainable economic growth led by private demand”.

ANALYST VIEWPOINT: Japanese stocks opened lower, “with a focus on the details of the 28 trillion yen stimulus”, said Chris Weston, chief market strategist with IG.

WALL STREET: U.S. stocks wobbled and finished mostly lower Monday as the price of oil continued to nosedive thanks to the strong dollar. US futures also indicated a lower opening on Wall Street, with Dow and S&P futures both down 0.2 percent.

The government hopes that the planned measures will increase gross domestic product by about 1.3 percent in the near term. The Dow and S&P 500 set all-time highs recently and the Nasdaq is within 1 percent of the record it set in July 2015.

OIL: Benchmark U.S. crude gained 5 cents to $40.11 after settling at $40.06 a barrel in NY on Monday. Brent crude was 0.4 per cent higher at $42.30 after closing down 3.2 per cent.

Oil has slumped more than 20% from a peak reached in June, with Saudi Arabia cutting crude prices to Asia and further increases in US drilling rigs sparking Monday’s 3.7% tumble.

The dollar touched a five-week trough against a basket of currencies.DXY, while the euro reached its highest since mid-July around $1.1230 EUR=. This includes the preparation of derivative works of, or the incorporation of such content into other works.