Investing.com - Shares in Tokyo gained on Wednesday after the central bank unveiled a new effort to spur inflation expectations in the latest twits in a decades-long battle.
The Nikkei 225 gained 1.11% after the Bank of Japan unveiled complex changes to its policy framework by setting a target for long-term interest rates that retains a ¥80 trillion ($750 billion) asset purchase plan, but in a drastically rejigged fashion as part of aims to change inflation expectations.
The BoJ has already implemented negative interest rates on some bank holdings along with the asset purchases to stimulate inflation after decades of deflation and stagnant growth, yet inflationary expectations appear to be weakening.
Earlier, Japan reported a trade balance deficit of ¥19 billion for August, widely missing an expected surplus of ¥202 billion, with imports down 17.3%, just shy of the 17.8% drop seen, and exports slumping 9.6%, compared to a 4.8% decline year-on-year expected.
Chinese stocks were barely changed with the Shanghai Composite Index up 0.05% and Hong Kong's Hang Seng Index down 0.12%. The People's Bank of China set the yuan central parity weaker at 6.6738, compared with 6.6595 previously. Chinese Premier Li Keqiang ruled out any sharp yuan devaluation.
Overnight, U.S. stocks were higher after the close on Tuesday, as gains in the Healthcare, Consumer Services and Financials sectors led shares higher.
At the close in NYSE, the Dow Jones Industrial Average rose 0.05%, while the S&P 500 index climbed 0.03%, and the NASDAQ Composite index climbed 0.12%.