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Asian stocks dip, Nikkei trims losses after BOJ stands pat

September 21, 2023


Most Asian stocks moved in a flat-to-low range on Friday as markets continued to fret over rising interest rates, while Japan’s Nikkei trimmed some early losses after the Bank of Japan offered no changes to its ultra-dovish policy.

Regional markets were still reeling from a more hawkish than expected tone struck by the Federal Reserve this week, as the central bank warned that interest rates will remain higher for longer.

The European Central Bank and Bank of England also offered similar warnings, denting risk-driven assets across the globe. Higher rates limit the flow of foreign capital into Asia, presenting a weak outlook for local equities.