Nikkei closes flat as BoJ is believed to implement monetary easing

<p>The Nikkei was flat at close of play today as sources reveal the central bank of Japan could implement monetary easing next week.</p>

The Nikkei 225 in Japan has closed flat today (December 11th) as sources suggest the Bank of Japan (BoJ) is likely to implement another round of monetary easing next week.

Reuters reports that individuals close to the central bank believe looming risks such as the fallout from the US fiscal cliff and weak Chinese expansion continue to shroud the future of the world's number three economy in uncertainty, prompting the institution to expand its asset-buying and lending programme.

Indeed, the sources suggested that the monetary easing scheme – currently set at 91 trillion yen (£686 billion) by a further five-to-ten trillion when policymakers meet on December 19th and 20th.

Japan's general election takes placed on December 16th and the Liberal Democratic Party is tipped to win.

If so, leader Shinzo Abe is likely to call on the BoJ to take steps such as unlimited monetary easing to achieve two per cent inflation.

At 10:20 GMT, the Nikkei 225 was flat at 9525.3 points.

Learn all about CFD trading platforms and the Asian markets at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.