Japan's benchmark Nikkei shed as much as 1.5 percent on Tuesday after the Bank of Japan (BOJ) disappointed investors by failing to address recent market volatility in its monetary policy statement.
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BOJ in Focus
Analysts widely expected no action from Japan's central bank but many were hoping for additional steps to ease recent market turbulence. The disappointment was reflected in the yen, which strengthened to the 98 handle per dollar from its previous level of 98.9.
"The BOJ is sending the message that at the end of the day it's a central bank and will not pander to the markets too much," said Vishnu Varathan, market economist at Mizuho Corporate Bank.