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LAST_UPDATEThu, 20 Nov 2014 11pm

Yen Gains, Japan Stocks Drop On Delayed Stimulus As Gold Rises

TOKYO: The yen gained a third day and Japanese equities dropped after the Bank of Japan deferred new monetary stimulus. Asian stocks outside the country rose with gold before U.S. lawmakers vote on the debt limit. 

The yen added 0.1 percent to 88.62 per dollar at 9:06 a.m. in Tokyo, after advancing the most in eight months yesterday. The Nikkei 225 Stock Average and Topix Index slid at least 0.9 percent.

The MSCI Asia Pacific excluding Japan Index climbed 0.2 percent, while futures on the Standard & Poor’s 500 Index were little changed. Gold rose 0.1 percent to $1,694.80 an ounce.

The yen will weaken further against the U.S. currency by the end of the year, according to a Bloomberg survey, as the BOJ’s decision to hold off on fresh stimulus puts pressure on the government to revive growth through fiscal measures.

U.S. House Republicans vote today on lifting the nation’s debt ceiling through mid-May.

The state of the U.S. government’s finances is the greatest risk to the world economy, a Bloomberg poll showed.

The Bank of Japan meeting “marked yet another faltering step on the path toward reflation,” said David Homan, New York- based director of macro strategy at Credit Suisse Group AG.

The decision “leaves a lot of steps still to come. The reality for reflation still looks more like a slow-burning fuse.”

Japan’s Nikkei 225 Stock Average fell as the stronger yen weighed on exporters.

Mazda Motor Corp. slid 2.8 percent while Canon Inc., the world’s biggest camera maker, dropped 1.2 percent.

- Bloomberg

http://www.bloomberg.com/news/2013-01-23/yen-gains-japan-stocks-drop-on-delayed-stimulus-as-gold-rises.html