RPT-GLOBAL MARKETS-Yen firms as BOJ disappoints, stocks rise

* BOJ disappoints markets with timid policy tweaks

* Yen edges higher, Nikkei pares strong early gains

* Broader Asian stock markets up 1.3 pct on Wall St rebound

* European shares also rise, brace for more US economic
data
(Repeats to more subscribers)

By Vikram S.Subhedar

HONG KONG, Aug 30 (BestGrowthStock) – The yen rose and Japanese
shares gave up some of their strong early gains on Monday after
the Bank of Japan made only minor tweaks in policy,
disappointing markets looking for more aggressive action
against deflation.

In an emergency meeting, Japan’s central bank voted to
expand its cheap fixed-rate loan programme for banks, but
stopped short of bolder steps to stem a rise in the yen that
has threatened the country’s already fragile economic recovery.
[ID:nTOE67S01V]

Leading European shares (.FTEU3: ) rose for a third straight
session, mirroring gains in Asia and on Wall Street on Friday
after Federal Reserve Chairman Ben Bernanke downplayed concerns
that the slowing U.S. economy might slip back into recession.
[.N]

S&P 500 futures (SPC1: ) rose 0.4 percent, pointing to a
stronger opening for U.S. markets later in the day.

Tokyo’s Nikkei (.N225: ) ended up 1.8 percent after rising
more than 3 percent before the BOJ announcement, while Japanese
government bonds pulled back sharply from their intraday lows.
[.T]

Asian stocks outside Japan (.MIAPJ0000US: ) rose 1.3 percent.

Bank of Japan Governor Masaaki Shirakawa said the central
bank needs to carefully examine the drawbacks when considering
already low interest rate but did not rule out any specific
policy option in case the economy worsens. [ID:nTKU106230]

The strengthening Japanese currency, which hit a 15-year
high of 83.58 yen against the dollar last week, has taken its
toll on the country’s exporters, pushing the Nikkei (.N225: )
down nearly 20 percent since its peak in early April.

The yen firmed against the dollar after the BOJ’s move,
which was seen by investors as a symbolic gesture that would do
little to halt the currency’s climb and may prolong deflation.

At 0700 GMT the dollar was hovering around 85 yen (JPY=: )
from around 85.88 yen just before the BOJ announcement. The
euro slid to 108.23 yen (EURJPY=R: ) from around 109.49 yen
beforehand.

“If the BOJ really wanted to do something about the
strength of the yen, they should have done something about
deflationary pressures. The current policy of doing nothing
simply isn’t working,” said Robert Rennie, currency strategist
at Westpac in Sydney.

Global investors will continue to focus this week on the
U.S. economy’s flagging momentum, with a slew of economic data
from Washington including August payroll figures expected to
add to the gloomy outlook. [ID:nN2798857]

Even if the U.S. economy does avoid a “double-dip”
recession, investors fear growth could effectively stall,
making companies and consumers even more cautious about fresh
spending.

Later on Monday, the U.S. commerce department is scheduled
to release July personal income and consumption data which is
expected to show a rise of 0.3 percent in both income and
spending, according to a Reuters survey.

Oil (CLc1: ) stayed near an eight-day high above $75 a
barrel, while spot gold (XAU=: ) was slightly lower at $1,235.35
an ounce.
(Additional reporting by Aiko Hayashi in TOKYO)
(Editing by Kim Coghill)

RPT-GLOBAL MARKETS-Yen firms as BOJ disappoints, stocks rise