BoJ to start asset purchases immediately

The Bank of Japan under Kuroda's leadership is widely expected to start open-ended asset-purchases immediately, rather than in 2014 as it was initially expected. Earlier this month, the Kuroda pledged to inject 101 trillion yen ($1 trillion) into the world's third largest economy by the end of this year using asset purchases and lending programme. Moreover, the nation's central bank will start open-ended purchases from next year by buying 2 trillion yen of bonds a month, as it was agreed in January. The first meeting under the new BoJ Governor Haruhiko Kuroda is scheduled on April 3-4, during which Kuroda is likely to set a new target to start buying longer-dated bonds. 

"If the BOJ were to increase asset purchases, it will likely target longer-dated government bonds," said a source. The sources spoke on condition of anonymity due to the sensitivity of the matter.

Meanwhile, Japan retail sales fell more than expected in February, declining by 2.3% from a year earlier following a 1.1% drop the previous month. In contrast, most analysts had predicted a 1.2% dip.