The yen eased against the dollar yesterday after Japan unveiled a surprisingly large $265 billion stimulus package, while US equity markets pared early gains as investors awaited the end of two-day meeting of Federal Reserve policymakers.

The earlier-than-expected announ­cement to boost the flagging Japanese economy lifted Asian stock markets but weighed on the safe-haven yen. The 28-trillion yen package exceeded initial estimates of about 20 trillion yen.

Wall Street opened higher, bolstered by strong results from Apple. But the benchmark S&P 500 index retreated and the Dow industrials traded just above break-even as technology shares rose.

European shares gained, led by auto stocks and luxury group LVMH after its second-quarter sales beat forecasts. The pan-European FTSEurofirst 300 rose 0.3 per cent. MSCI’s all country world stock index gained 0.07 per cent.

“Folks are waiting for the Fed today for some sort of guidance, but it’s a head-scratcher that there’s nothing that can hold this market down,” said Jacob Rappaport, head of equity at INTL FCStone Financial Inc. in Florida.

The Dow Jones industrial average rose 8.97 points, or 0.05 per cent, to 18,482.72. The S&P 500 fell 3.01 points, or 0.14 per cent, to 2,166.17 and the Nasdaq Composite is added 22.50 points, or 0.44 per cent, to 5,132.55.

The prospect of more stimulus in Japan has overshadowed the Fed meeting, where the US central bank was expected to leave interest rates unchanged.

Solid economic data has increased expectations that the Fed will raise rates in December, though some traders and analysts believe the Fed could hint that a September hike is possible.

The Fed’s policy-setting Federal Open Market Committee is scheduled to release its policy statement today. The yen was down 0.89 per cent at 105.57 per dollar. The euro rose slightly to $1.0988.

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