[Glanteeignile]

Aussie Rises as Asian Stocks Gain Amid Talk of BOJ Easing

Australia’s dollar strengthened against the yen before the Bank of Japan (8301) concludes a policy meeting amid speculation the central bank may add stimulus measures this month.

The so-called Aussie trimmed earlier losses as Asian stocks rose and business conditions improved, boosting demand for riskier assets. Gains in the Australian and New Zealand dollars was limited before data which may show growth slowing in China.

“If you are long yen, then you would probably reduce some of that ahead of Bank of Japan decision,” said Thomas Harr, the Singapore-based head of Asian foreign-exchange strategy at Standard Chartered Plc. “There’s always a risk that the BOJ could do something. Risk appetite seems to be stabilizing to some extent and that is lifting the Aussie.”

Australia’s dollar rose 0.2 percent to $1.0337 as of 12:25 p.m. in Sydney from yesterday’s close in New York. The Aussie advanced 0.5 percent to 84.48 yen. New Zealand’s currency was at 82.32 U.S. cents from 82.16 yesterday. The so-called kiwi gained 0.5 percent to 67.27 yen.

The MSCI Asia Pacific Index (MXAP) of stocks rose 0.2 percent while the Nikkei 225 Stock Average climbed 0.9 percent.

Morgan Stanley MUFG Securities Co., Mizuho Securities Co. and SMBC Nikko Securities Inc. forecast that the BOJ will expand asset purchases at a meeting on April 27, according to a survey by Bloomberg News. Twelve of 13 economists surveyed by Bloomberg have said they expect the BOJ to keep accommodative policies unchanged at the two-day meeting concluding today.

Eyes on BOJ
‘All eyes are now on today’s BOJ decision as easing hopes are fanned by a number of recent events,’’ Cameron Umetsu, an economist at UBS AG, wrote in a research note today. BOJ easing “would still boast the potential to put the yen on the defensive.”

Australian business confidence advanced in March as the global economic outlook improved and the local currency weakened by the most in six months, a private survey showed. The confidence index rebounded to 3 last month from a five-month low of 1 in February, a National Australia Bank Ltd. (NAB) survey of about 400 companies taken March 26-30 and released in Sydney today showed.

The yen has fallen 0.5 percent today, the worst performance among 10 currencies tracked by Bloomberg Correlation-Weighted Indexes. The kiwi is little changed, while the Australian dollar has risen 0.1 percent.

In China, imports probably rose 9 percent in March from a year earlier, after a 39.6 percent jump in February, according to median estimate of economists surveyed by Bloomberg News before the data today. China, Australia’s biggest trading partner and New Zealand’s second largest, posted the widest trade gap in February since at least 1989 as exports increased less than expected and imports surged.

“Any signs of weakness in the Chinese data today, or any concern about a slowdown in China, will weigh on the Aussie,” said Janu Chan, an economist at St. George Bank Ltd. in Sydney.