Japan's Nikkei 225 Stock Average extended its best back-to-back quarterly gain in four decades and the nation's long-term bonds rose on expectations of economic stimulus.
The yuan and South Korean stocks climbed. The Nikkei added 0.5 per cent even as the broader Topix Index slid 0.2 per cent at the market close in Tokyo. The MSCI Asia Pacific Index increased 0.1 per cent with many markets shut for a holiday.
Japan's 20-year bond yields touched the lowest since 2003, and the yen is set for a sixth monthly drop on bets Bank of Japan governor Haruhiko Kuroda will heed the government's call to boost monetary easing as early as next week.
The yuan touched a 19-year high. Japan's manufacturers predict a rebound in production this month after the deepest slide since the aftermath of the March 2011 earthquake. Mr Kuroda said this week the BOJ may scrap a rule limiting the scale of asset buying and scoop up longer-maturity bonds to reach a 2 per cent annual inflation target it adopted at the urging of prime minister Shinzo Abe.
Financial markets in the US and most of Europe are shut today for Good Friday, while exchanges in Russia and Turkey were open. Much of Asia is also closed, including Hong Kong, Singapore, India, Australia, Indonesia, New Zealand, the Philippines and Sri Lanka.
Korea's Kospi index advanced 0.6 per cent even as military tensions with North Korea intensified. North Korean leader Kim Jong Un yesterday ordered rockets be placed on standby, the state-controlled Korean Central News Agency said today.
The won strengthened 0.2 per cent to 1,111.35 per dollar, posting the best quarterly run since September 2010. The yen rose 0.1 per cent to 94.06 per dollar this afternoon, set to complete its longest stretch of monthly declines since 2001.
The euro was little changed at $1.2819 against the greenback. Japan's industrial output will rise 1 per cent in March after a 0.1 per cent drop in February from the previous month, according to estimates submitted for a Trade Ministry report today.
Year-on-year data showed production slid 11 per cent in February while consumer prices excluding fresh food fell 0.3 per cent, failing to rise for a 10th month. Kuroda will preside over his first BOJ policy meeting on April 3rd and 4th. He said this week he aimed to achieve the 2 per cent price target within two years.
Japan's 20-year government bond yield slid as much as 4.5 basis points to 1.360 per cent, and the 30-year rate sank 6 basis points to 1.5 per cent. Both were the least since July 2003.
Bloomberg
