The lone Federal Reserve policymaker to dissent against the U.S. central bank's decision this week to end its bond-buying stimulus said Friday that the Fed was risking its credibility by failing to take action against a worrisome drop in inflation.
Japanese life insurers are looking to buy more foreign bonds in the six months to March as yields on domestic bonds have fallen to uneconomical levels due to the Bank of Japan's massive purchases as part of its monetary easing program.
Asian shares ticked higher on Friday on Wall Street's cheer after upbeat U.S. growth data, while the dollar traded around four-week highs against the yen as investors awaited the outcome of the Bank of Japan's monetary policy meeting.
With just five months left before Governor Haruhiko Kuroda's self-imposed deadline for banishing deflation, the Bank of Japan is preparing for failure, and the first casualty could be its facade of board unity.
Japan's industrial output rose in September at the fastest pace in eight months in a tentative sign of recovery in factory activity, offering some relief for Prime Minister Shinzo Abe as he moves closer to making a decision on a second sales tax hike.
The Bank of Japan on Tuesday maintained its massive asset buying program but offered a bleaker view on factory output, following signs that the world's third-largest economy was hit harder than expected by a sales tax increase in April.
Japan's legions of retail foreign-exchange traders, popularly known as Mrs Watanabe, are turning into sellers of yen.
Japan's economy shrank an annualised 7.1 percent in April-June from the previous quarter, more than a preliminary estimate, underscoring concerns the hit from an April increase in the sales tax may have been bigger than expected.
Bank of Japan was optimistic about the country's economic recovery.
Bank of Japan bought US$9.5 billion Japanese government bonds.
Yen hit 96.47 gained 2% against the US dollar.
Outside Japan, BoJ perceived lack of action affects even Euro Stocks.
Japan's central bank holds back on new measures to calm turbulent markets.