After a week full of fundamentals in the Asian region we are about to greet a new week free from effective fundamentals; but further central banks' decisions are to be seen this week. Asian stocks managed to stabilize and incline last week, but with a week without fundamentals, shares may move on investors' sentiment and expectations for the global economic outlook.

This week won't witness many fundamentals from Asian's largest economies, but the Bank of Japan will release its rate decision. As usual that bank is expected to keep interest rates steady at its lowest record of 0.10%, as the same decision was taken in the past 15 meetings.

Recently, the BOJ increased pressures on Prime Minister Yukio Hatoyama to deal with the increasing deficit, while the bank warned the government about investors' confidence that was threatened after Greece's debt crisis. The BoJ sees that it is more appropriate to be battling for confidence from financial markets through steady and sound policies and "fiscal consolidation".

However, Governor Shirakawa currently focuses on buying ailing debt from banks and companies to buoyant investors confidence in the central bank's monetary expansion policies. The Japanese Finance Minister is blaming the BOJ on not taking steps towards fighting deflation, while he asked the bank to set an inflation target.

Mr. Shirawaka signaled it’s hard to stave off deflation risks using only monetary policies; the government should play its roles through its taxes and fiscal policies, besides the BOJ's monetary policy tools.

One of the BOJ's tools was the financial program of 10 trillion yen ($109 billion) in short term loans for commercial banks, in addition to buying as much as 1.8 trillion yen of government bonds and keeping the benchmark interest rates at 0.10% since December 2008.

Dear reader, the world's second largest economy is facing a tough financial positioning, especially with problems witnessed between the Bank of Japan and the government; and amid all that, deflation risks are still threatening economic recovery. Despite slow improvements seen in Japanese stocks, it remains a fact that investors confidence is threatened like the BOJ governor said. 

After a week full of fundamentals in the Asian region we are bout to meet a new week free from effective fundamentals, but its will witness central banks' decisions. Asian stocks managed to stabilize and incline last week, but with a week without fundamentals, shares may move on investors' feelings about markets