Asian markets on the rise while Thailand declares martial law

Guy Bentley
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Asian markets are enjoying modest gains as the Bank of Japan's (BoJ) two day policy meeting gets underway. The BoJ is widely expected to maintain current policy when it announces its decision on Wednesday.

Governor Haruhiko Kuroda has sought to maintain an optimistic outlook for the health of the Japanese economy, dampening expectations the BoJ will opt for further monetary easing in the immediate future.

The Nikkei broke a four day losing streak on the back of a weaker currency, while Yahoo Japan enjoyed a 10 per cent boost after announcing it would not be buying Softbank's telecoms provider, eAcess.

There was further reason for optimism after a Reuters poll found more Japanese businesses believed sales would recover toward the end of the year after April's sales tax hike.

However, investors will be keeping a close eye on Thailand where the military has declared martial law after months of anti-government protests. Military officials deny that the move represents a coup.

Thailand may see restoration of law and order in the short term but the political situation in the medium term remains uncertain.