BOJ may seek ways to calm bond market, policy on hold

TOKYO | Mon May 20, 2013 3:10am BST

(Reuters) - The Bank of Japan is expected to stand pat on monetary policy this week despite jitters over the recent volatility in bond markets, hoping it can prevent a renewed spike in yields by fine-tuning market operations.

The central bank may front-load bond purchases or offer funds via market operations more frequently if the bond market turbulence persists, which are technical steps that can be taken by its bureaucrats without approval by the nine-member board.

FTSE 100 starts with modest gains with banks to the fore

Japan upgrades economic outlook as Abe's policies take hold

(Reuters) - The Japanese government upgraded its assessment of the economy on Monday, as emerging signs of an upturn in exports and factory output added to growing evidence that Prime Minister Shinzo Abe's aggressive polices are beginning to reignite growth.

The world's third-biggest economy is gradually recovering, according to the government's monthly report released by the Cabinet Office.

FTSE 100 ends comfortably higher, with RBS the leader