Asian markets calm as Japan boosts bank lending
Asian markets have so far been indecisive as investors continue to await developments regarding Chinese interest rates.
The People's Bank of China (PBOC) is attempting to drive up the cost of money to encourage companies to deleverage and reduce shadow banking activity.
However, there remain concerns that tightening may hurt economic growth over the short and medium term.
Japan's Nikkei is down 0.5 per cent after a three per cent rally on Tuesday – following the Bank of Japan's (BoJ) decision to extend the ability of banks to borrow at ultra-low rates.
The BoJ raised the size of the facility created to increase lending by banks from 3.5 trillion yen to seven trillion yen. Banks will be able to borrow at 0.1 per cent for next four years.
The decision came in the wake of below-consensus GDP figures released at the beginning of the week.
The Hong Kong Hang Seng Index is marginally up 0.2 per cent, while the Shanghai Shenzen CSI 300 index has risen 0.2 per cent.