The Bank of Japan is expected to keep monetary policy steady at its policy-setting meeting next week, according to sources familiar with the central bank's thinking.
With share prices on the rise and the yen weakening since last month's monetary easing by the central bank, it likely sees little reason to offer additional monetary stimulus to an economy showing growing signs of recovery, according to the sources, who spoke on condition of anonymity.
Also, with prospects rising for Greece to avert a debt default, the BOJ is seen standing pat barring a sharp turn of events in Europe or disappointment in U.S. payrolls data big enough to jolt financial markets. The U.S. data is due out at 1.30 p.m. on Friday.
The BOJ holds a two-day review of monetary policy next Monday and Tuesday.
(Reporting by Tokyo Newsroom; Editing by Michael Watson)