Trading in Asia was cautious on Thursday as investors awaited central bank decisions in Japan and Europe.
The Bank of Japan is expected to leave its monetary policy on hold as it wraps up a two-day review. Traders will be looking for any comments regarding the recent spate of weak economic data as a result of April’s sales tax rise. Later in the day, focus will be on the European Central Bank’s policy meeting, with some anticipating it could unveil new stimulus measures following dismal inflation and factory activity data.
“Whatever the outcome of tonight’s meeting, the [market’s] malaise is likely to be broken. The likelihood for surprise and disappointment is high which will see trading activity return, regardless of the outcomes,” said Evan Lucas, market strategist at IG, in a morning note.