The Nikkei 225 index on Friday edged higher after opening lower, then met resistance and fall down at one time in the trading session, and finally closed up 0.01%. BOJ (Bank of Japan) maintained the interest rates, disappointing the market. Market had generally expected BOJ would lower the interest rates to prevent further appreciation of the yen.
BOJ on Friday ended a two-day monetary policy meeting, and decided to maintain the current ultra low interest rates of 0-0.1%, meanwhile maintained the 70 trillion yen asset purchase scale. BOJ said it has adopted strong and easy monetary measures, and it will continue to take appropriate monetary measures, and make every effort to ensure the stability of the Japanese financial system. BOJ also maintained the economic assessment and believes that the Japanese economy has begun to increase modestly, with signs of rise in export and modest increases in production.
BOJ maintained the interest rates, weighing on the Japanese stock market, because market generally had expected BOJ will lower interest rates to prevent further appreciation of the yen.
G20 officials said if the Greece general election causes market instability, the major countries have been ready to stabilize the financial markets by providing liquidity and preventing credit squeeze. This news is beneficial to the Japanese stock market.
Before the Greek general election this Sunday, the Japanese stock market will be in a modest correction, as investors are generally taking a wait-and-see attitude.
The Nikkei 225 index reported at 8,569.32, representing an increase of 0.01%.