Bank of Japan Standing Pat on Zero Interest Rate Policy
DEBORAH MARCHINI, CNN ANCHOR: In Japan, that closely watched decision to leave interest rates unchanged came after trading closed.</s>DAVID HAFFENREFFER, CNN ANCHOR: Lian Pek wraps up the day in the Asian markets from our studios in Hong Kong. Good morning.</s>LIAN PEK, CNN CORRESPONDENT: Good morning, Dave and Deborah. Well, as expected, the Bank of Japan is standing pat on its zero- interest rate policy, choosing to keep monetary policy unchanged in the wake of Sogo's collapse, and the concerns it has triggered about the health of the Japanese economy. But, in a rare statement, the central bank did say that Japan's economy is coming to a stage where the inflationary concerns are being dispelled. It's now keeping a close eye on job and income conditions to make sure they stop worsening before making a move on rates. Disappointed with the move, the yen slid more than one full yen to a low of 108.3 against the dollar. But it has come back slightly, underpinned by expectations that the BoJ will not hold its fire for long. Japanese stocks fared better, the Nikkei 225 closing up nine- tenths of a percent higher on the day. Here in Hong Kong, the Hang Seng index jumped nearly 1 1/2 percent. China Mobile lead the gainers, soaring 3 1/2 percent after Nasdaq's Friday rally boosted local telecom stocks. Over in Taiwan, stocks closed higher for the fourth day running. The TAIEX of nearly eight-tenths of a percent as banking stocks took heart from news that banks would receive higher interest rates on their deposit with the central bank. The central bank is upping deposit rates by 0.8 of a percentage point to four percent to boost the financial sector's competitiveness. And that's a quick wrap of business in Asia. Back to you, Dave and Deborah.</s>HAFFENREFFER: All right, thank you very much.