Global Markets: Asian shares pause, yen volatile as BoJ meeting eyed
Asian shares held steady on Monday after surging to multi-month highs last week, while the yen firmed after touching a new low in choppy trade ahead of a Bank of Japan policy meeting this week that is expected to yield bold monetary easing measures.
The MSCI's broadest index of Asia-Pacific shares outside Japan was steady after earlier easing as much as 0.3 percent. The index closed at a 17-1/2-month high on Friday as upbeat U.S. and Chinese data lifted sentiment.
Australian shares inched up 0.1 percent while South Korean shares recouped earlier losses but remained capped as a stronger local currency hurt exporters.
The focus in Japan was on the BoJ, which starts its two-day policy meeting on Monday under growing political pressure to pursue bolder measures to beat deflation, with speculation ranging from an open-ended commitment to buy assets until a 2 percent inflation target is achieved to simply boosting its asset buying schemes.
Early on Monday, the dollar touched a fresh 2-1/2-year high of 90.25 yen, and the euro rose to a high of 120.27 yen, near its peak since May 2011 of 120.73 hit on Friday.
But the yen clawed back some of its losses against the dollar and the euro. The dollar slipped back to a low of 89.42 yen and was last trading at 89.66 yen, while the euro also fell to a low of 119.08 and last traded at 119.44 yen.
"Profit taking pushed the dollar and the euro down against the yen but short covering lifted them off their
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