World stocks retreat on Japan inaction

Stock markets around the world slid today after the Bank of Japan decided against more stimulus to support the economy, ahead of a key meeting of the US Federal Reserve.
Europe's main indices were down between half and one per cent in afternoon deals, erasing gains won a day earlier on hopes of central bank action to boost the global economy.
Fresh slides for oil prices and share prices of heavyweight miners heaped further pressure on markets, while traders were also pricing in geopolitical concerns.
"Stocks fell on Tuesday after the Bank of Japan decided against adding to stimulus and concerns re-emerged over a drop in the price of oil," said Jasper Lawler, analyst at trading group CMC Markets.

"Talk of another North Korea nuclear weapons test hasn't helped market sentiment."
Lawler added that London's benchmark FTSE 100 index was weighed down also by a slump in miners' share prices after Chilean miner Antofagasta scrapped its dividend in "a sharp reminder of the industry's suffering after the hefty drop in metals prices".

Antofagasta plunged 9.7 per cent, followed close behind by Anglo American which tumbled 8.7 per cent in London afternoon trading.
The Japanese central bank today kept its monetary stimulus unchanged as policymakers digested the impact of the negative interest rates announced in January.
The decision was widely expected, although analysts predict Governor Haruhiko Kuroda and his team will unleash more monetary firepower in the coming months to kick-start Japan's weak economy.

Tokyo shares closed down 0.68 per cent after the announcement, while the yen, seen as a haven investment, strengthened against its major peers.
Investors were closely watching the BoJ as concerns mount that central banks are low on firepower to boost the sagging world economy.
Last week the European Central Bank unveiled dramatic new stimulus measures, while US Federal Reserve officials today begin a meeting that will be closely watched for clues on whether it will delay further raising interest rates.
Financial markets have staged a comeback from their worst start to the year in living memory, but investors are still nervous about signs of weak global growth -- particularly in number two economy China.

"The elevated expectations over central banks maintaining their current policy measures to stimulate global growth amid the ongoing financial turmoil have offered a false lifeline to stock markets," said FXTM research analyst Lukman Otunuga.