Asia report: Most markets fall amid BoJ market chatter

Most stock markets in the Asia-Pacific region closed in the red on Monday, as investors took their cues from a weekly loss on Wall Street by the closing bell stateside on Friday.

Sentiment was also muted as market participants looked ahead to a busy week for economic releases.

“Asian equity markets started the week with a cautious tone ahead of a round of headline risk, with US tech heavyweights set to report earnings and Friday’s Bank of Japan meeting with new governor Ueda leading his first central bank session as we head into month-end rebalancing and positioning,” said Patrick Munnelly, market analyst at TickMill Group.

“The Nikkei once again is faring best of the regional bourses as reports suggest that Friday’s BoJ meeting shouldn't see any immediate adjustments to the current easy monetary policy position.

“However, investors will be on alert as market chatter suggests the BoJ may announce a comprehensive review of its current monetary policy and its economic impact as the first phase of a planned approach to adjusting its monetary policy stance.”

Most markets in the red, Japan and NZ the outliers

In Japan, the Nikkei 225 gained 0.1% to close at 28,593.52, while the Topix added 0.11% to finish at 2,037.34.

Among the top performers on Tokyo’s benchmark were ANA Holdings, Chugai Pharmaceutical, and Konami Corporation, which rose by 3.74%, 3.5%, and 2.37%, respectively.

In mainland China, the Shanghai Composite fell 0.78% to close at 3,275.41, while the Shenzhen Component dropped 1.17% to finish at 11,317.01.

Hubei TKD Crystal Electronic Science and China Satellite Communications were among the biggest losers in Shanghai, falling by 10% and 9.98%, respectively.

In Hong Kong, the Hang Seng Index declined 0.58% to close at 19,959.94, with Li Ning Co, Haier Smart Home, and Longfor Properties among the biggest decliners, falling by 3.64%, 3.02%, and 2.43%, respectively.

South Korea’s Kospi fell 0.82% to close at 2,523.50, with GS Engineering & Construction and SK Bioscience among the large losses, falling by 4.48% and 4.35%, respectively.

In Australia, the S&P/ASX 200 slipped 0.11% to close at 7,322.00, with Invocare and South32 the biggest decliners, falling by 7.85% and 7.42%, respectively.

New Zealand’s S&P/NZX 50 joined Japan on the upside, gaining 0.83% to close at 12,026.39, with Heartland Group and Sanford among the biggest gainers, rising by 2.55% and 2.47%, respectively.

In currency markets, the yen was last 0.17% against the dollar to trade at JPY 134.39, and the Aussie pair lost 0.13% to AUD 1.4964.

The Kiwi, however, strengthened 0.07% on the greenback to change hands at NZD 1.6277.

On the oil front, Brent crude futures were last down 0.24% on ICE at $81.46 per barrel, while the NYMEX quote for West Texas Intermediate slipped 0.12% to $77.78.

BoJ considering a review of its loose monetary policy

In economic headlines, the Bank of Japan was reported to be considering a review of its monetary easing measures over the long-term.

The Sankei newspaper, cited by Reuters, said the central bank could start discussing the issue at its next policy meeting, set to kick off on Thursday.

It would be the first policy meeting chaired by its new governor, Kazuo Ueda.

Elsewhere, Singapore's core inflation rate for March slowed to 5% year-on-year, slightly lower than the 5.1% rate economists had pencilled in.

That marked a decline from February's 14-year high of 5.5%.

The headline inflation rate, which includes accommodation and private transport costs, came in at 5.5% year-on-year, down from the previous month's 6.3%.

Singapore’s statistics department said food costs saw the fastest rise in March, recording a 7.7% year-on-year increase, followed by recreation and culture costs, which were ahead 6.8%.

Reporting by Josh White for Sharecast.com.