Japanese stocks fell,
paring the Topix index’s first monthly advance since November, as the
yen strengthened after Federal Reserve Chair Janet Yellen voiced caution
on raising interest rates given the risks to world growth.
The Topix declined 0.3
percent to 1,373.16 at 9:01 a.m. in Tokyo, with all but six of the 33
industry groups sinking. The measure is on course for a 5.7 percent gain
in March. The Nikkei 225 Stock Average retreated 0.3 percent to
17,057.89. Yellen said it’s appropriate for U.S. central bankers to
“proceed cautiously” in raising rates amid deteriorating world growth.
The yen gained 0.7 percent on Tuesday, halting its longest losing streak
since October, and traded little changed at 112.62 per dollar today.
Futures on the
Standard & Poor’s 500 Index added 0.1 percent. The underlying U.S.
equity gauge jumped the most in two weeks to erase losses for the year
following Yellen’s speech. Traders see zero chance of the Fed raising
rates in its April meeting, while the probability of a rate hike in June
was at 28 percent, down from 46 percent a week ago.
Prime Minister Shinzo
Abe said Tuesday that the best way to boost the economy is to quickly
implement the existing budget for the next fiscal year, rejecting
speculation he would announce a supplementary spending package.
Speaking after the
parliament passed a record 96.7 trillion yen ($850 billion) in outlays
for the 12 months starting April 1, Abe brushed off suggestions the
government may announce another 10 trillion yen of fiscal stimulus. He
reiterated that Japan will go ahead with a plan to increase the sales
tax next year, barring a major economic shock.
Source : Bloomberg
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