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Falling yen may help Japan, but proving a headache for other countries, especially in Asia

TOKYO - A steady decline in the yen is proving a godsend for exporters such as Toyota and has won solid support from Japan's main trading partners, who are betting the impact on their own currencies will be offset by gains from a recovery in the world's third-largest economy. It's not such good news for entrepreneurs like Thamonwan Thawornthaweewong, whose Angry Bird fish balls, squid rings and other products now cost more to sell in Japan.

Tokyo stocks close up 1.60%

Tokyo stocks climbed 1.60 percent to close at their highest level in more than five years Wednesday, with investor appetite unabated due to a weak yen and record-setting levels on Wall Street. The benchmark Nikkei 225 index gained 246.24 points to 15,627.26, the best finish since late December 2007. The Topix index of all first-section issues was up 0.44 percent, or 5.64 points, at 1,276.03. Stocks maintained their gains after the Bank of Japan made its widely-expected announcement of no new easing measures.

BOK-Fed policy shift

(ATT: UPDATES with more info in last 2 paras) SEOUL, May 22 (Yonhap) -- South Korea's top central banker said Wednesday that the potential end of the U.S. Federal Reserve's massive monetary easing drive could spark risks from a rise in bond yields, raising the need to brace for impacts of such a policy shift. Speculation is growing that the Fed may slow the pace of its bond purchases this year, which probably will jack up bond yields, causing losses for bond holders such as banks and other financial institutions.

BOK-Fed policy shift

SEOUL, May 22 (Yonhap) -- South Korea's top central banker said Wednesday that the potential end of the U.S. Federal Reserve's massive monetary easing drive could spark risks from a rise in bond yields, raising the need to brace for impacts of such a policy shift. Speculation is growing that the Fed may slow the pace of its bond purchases this year, which probably will jack up bond yields, causing losses for bond holders such as banks and other financial institutions.

Asian stock markets rise after Fed official says US should maintain easy monetary policy

BANGKOK - Asian stock markets were mostly higher Wednesday after investor confidence was boosted by a Federal Reserve official's comments that the U.S. central bank should stick with its super-easy monetary policy. Regional Fed chief James Bullard said in a speech Tuesday that the Fed should continue its monthly $85 billion in bond purchases, which drives down interest rates and thus encourages lending and spending, to help spur the U.S. economic recovery.

BOJ maintains monetary easing policy, upgrades economic assessment

The Bank of Japan decided Wednesday to maintain its current aggressive monetary easing policy aimed at beating deflation and upgraded the country's economic assessment, at a time when consumption and exports have started to recover, backed by a weakening yen and rising stocks. Lifting the economic assessment for a fifth month in a row, the central bank said "Japan's economy has started picking up," revising upward its description at the previous policy meeting on April 26 saying that it "has stopped weakening and has shown some signs of picking up."

Bernanke's congressional testimony to be studied for any hints of shift on Fed bond purchases

WASHINGTON - When Ben Bernanke testifies about the U.S. economy Wednesday, the Federal Reserve chairman's words will be examined for any clues that the Fed might soon taper — or increase — its support for the economy. The Fed is pursuing an aggressive program of bond purchases to try to keep long-term interest rates down and encourage borrowing and spending. The Fed has said it plans to continue its $85 billion-a-month in Treasury and mortgage bond purchases until the job market improves substantially. The timing of any policy shift remains hazy.

Bank of Japan says no new easing measures

The Bank of Japan on Wednesday held off fresh easing measures, saying after a two-day policy meeting that a continuation of steps introduced last month would help Japan overcome deflation. The central bank said its widely expected decision to stand pat was reached by a unanimous vote by its board. In early April, the bank's new management team -- hand picked by Prime Minister Shinzo Abe -- embarked on a new era of huge asset purchases and massive monetary easing.

Fed could end bond buys in autumn if jobs outlook sure: Evans

By Ann Saphir CHICAGO (Reuters) - The Federal Reserve could continue full-speed ahead on its bond-buying program through the summer, but end it abruptly in the autumn if by then it is confident that the improvement in the jobs outlook is here to stay, a top Fed official said on Monday. "We've seen good progress in the labor market outlook," Charles Evans, president of the Federal Reserve Bank of Chicago, told the CFA Society Chicago.

BOJ holds steady despite bond turmoil, upgrades economic outlook

By Stanley White and Leika Kihara TOKYO (Reuters) - The Bank of Japan kept policy steady on Wednesday despite concerns over recent volatility in bond market, saying growth is starting to pick up even as risks loomed from an uncertain global outlook. The central bank upgraded its assessment of the economy, saying it "has started picking up," as Prime Minister Shinzo Abe's program of aggressive fiscal and monetary stimulus has boosted sentiment and a weaker yen has halted a decline in exports.
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