Asian Stocks Lower as Risk-Off Sentiment Domina

Markets are dominated by risk-off sentiment, while the Japanese Yen gains on rumours that the BoJ will be able to end its ultra-dovish monetary policy.




  1. Asian equity markets have begun the week negatively, with both the HSI and the Nikkei 225 Index ending the day lower than their weekly opens. There is a general atmosphere of risk-off sentiment and fear of impending recession.
  2. The Japanese Yen has strengthened upon a rumor that the Bank of Japan’s mandate will be changed to give flexibility over the current 2% inflation target, which is requiring an ultra-dovish monetary policy. Although the rumours are currently being denied, if they turn out to be true it would likely cause a more hawkish pivot from the BoJ which would almost certainly boost the value of the Yen further. The USD/JPY currency pair has fallen, touching the key support level at ¥135.79 earlier.
  3. The Bank of Japan will release its Policy Rate, its Monetary Policy Statement, and Meeting Minutes later in Tuesday’s Tokyo session.
  4. Daily new global coronavirus cases rose last week for the fifth consecutive week.  
  5. It is estimated that 68.7% of the world’s population has received at least one dose of a coronavirus vaccination.
  6. Total confirmed new coronavirus cases worldwide stand at over 657.8 million with an average case fatality rate of 1.01%.  
  7. The rate of new coronavirus infections appears to now be significantly increasing only in Brazil, Guatemala, Honduras, Japan, Mongolia, and New Zealand.  
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