Asian stock markets are mixed on Friday amid worries about trade wars as the U.S. is expected to unveil tariffs of about $50 billion in Chinese imports, while Beijing has said it will retaliate if the U.S. imposes tariffs.
Mainland China equities have been underperforming with small-cap focussed Shenzhen down by more than 2%. The Bank of Japan monetary policy announcement was able to generate some Yen volatility, albeit it was rather restrained. The BoJ both left the policy balance rate and the 10-year JGB yield target unchanged, which led to a weaker yen.
The Nikkei opened whigher with a gap but looks to have pared all its initial gains. The Australian market is advancing following the mostly positive cues from Wall Street and on higher commodity prices. Stocks are gaining across the board. Many markets in Asia were closed on Friday for holidays celebrating the end of Ramadan.
The Euro slipped after the European Central Bank indicated plans to wind down its bond buying program and pledged to keep interest rates on hold for at least a year. Even as it pledged to end its massive bond purchase scheme by the end of this year, the common currency shed 1.9 percent to the dollar after the rate comments, in its sharpest daily fall in almost two years since Brexit vote shock in 2016.
Oil prices were little changed as investors eyed a key OPEC meeting in Vienna. Saudi Arabia and Russia, architects of a producer deal to cut output, have indicated they want production to rise.
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