Investing.com - Most Asian exchanges traded higher during Tuesday’s session after comments from a leading contender to be the next Bank of Japan governor opened the door for immediate monetary easing in the world’s third-largest economy.
In Asian trading Tuesday, Japan’s Nikkei 225 surged 2.41% after Haruhiko Kuroda, believed by some traders to be a leading contender to be the next BoJ governor, said Japan has the room to deploy additional monetary stimulus in 2013. Those comments jibe with what Prime Minister Shinzo Abe wants: Unlimited and immediate easing aimed at weakening the yen and curing Japan of its deflationary ills.
Kuroda is currently head of the Asian Development Bank. Last month, BoJ said it would commit to Federal Reserve-style asset-buying, but that it would not engage in that program until 2014, disappointing traders that were expecting more immediate stimulus.
Japanese markets were closed yesterday. Hong Kong’s Hang Seng and the Shanghai Composite are closed again today in observance of the Chinese New Year.
Australia’s S&P/ASX 200 Index added 0.1% as traders appeared to be increase their wagers that the the Reserve Bank of Australia will cut interest rates by nearly 50 basis points. The country’s overnight cash rate is currently 3% and even a mere 25-basis point reduction would send Australian interest rates to record lows.
New Zealand’s NZSE 50 fell 0.06% after the Kiwi moved higher on reports that Japanese Finance Minister Taro Aso said he will tell the group of G20 nations at an upcoming meeting that Japan is trying to curb deflation, not manipulating the yen lower.
New Zealand exporters are grappling with a strong dollar and continued signs of easing by global central banks puts pressure on New Zealand to react, though there are no imminent signs of that happening.
Elsewhere, South Korea’s Kospi fell 0.12% after officials there, citing seismic data, said North Korea probably conducted a third nuclear test today. The won fell on the news as well. Singapore’s Straits Times Index was flat while S&P 500 futures are off 0.16%.