Nikkei sinks as BoJ dismisses need for fresh stimulus

Japan's Nikkei index has fallen another 2% after central bank governor Haruhiko Kuroda said there was no need for additional monetary stimulus to offset a recent sales tax hike.

The Nikkei closed down 2.1% at 14,300 after the Bank of Japan's Kuroda suggested no further stimulus programme was on the agenda - a third straight day of losses for the index. Kuroda acknowledged the Japanese economy may contract this quarter as a result of the increase in the sales tax, but expressed confidence growth would bounce back in summer. The governor's comments prompted a surge in the yen against the dollar yesterday, the currency rising 1.3% before paring gains overnight to 102.05 per US dollar. That put pressure on exporters during the Nikkei's Wednesday session, sendi...