Hong Kong CNN —Asian markets made solid gains Wednesday, with Japanese shares reversing early losses after a central bank official played down the prospect of an immediate hike in interest rates.
The gains follow days of volatility, which saw the Nikkei suffering Monday its biggest daily loss since 1987.
“We won’t raise interest rates when financial markets are unstable,” he was quoted as saying in a speech to executives in the northern Japanese city of Hakodate.
The central bank has hiked interest rates twice this year in a bid to contain inflation.
Decades of extremely low interest rates in Japan had seen many investors borrow cash cheaply there before converting it to other currencies to invest in higher-yielding assets.
Persons:
Shinichi Uchida, Kospi, Hong, Taiex, Uchida, ”, Olesya
Organizations:
Hong Kong CNN, Nikkei, Bank of Japan, US, Dow, Nasdaq
Locations:
Hong Kong, Asia, South, Hakodate, “, Japan, Europe, London