Tokyo stocks open 1.25% lower

Tokyo stocks opened 1.25 percent lower Wednesday after the Bank of Japan's new monetary easing policy mirrored market expectations, disappointing investors who had hoped for stronger measures.

The benchmark Nikkei 225 index was 134.33 points lower at 10,575.60 at the opening bell.

"The BoJ monetary policy announcement came so completely within range of market expectations that it rang as a disappointment," SMBC Nikko Securities general manager of equities Hiroichi Nishi told Dow Jones Newswires.

The Bank of Japan on Tuesday adopted a two-percent inflation target to tackle the country's long-running deflation and launched an unlimited asset purchase scheme to kickstart the limp economy.

But the new plan was largely in line with market expectations, which pressured the greenback against the yen as disappointed traders pinning their hopes on more aggressive easing sold off the pair.

The greenback fell to 88.57 yen in Tokyo morning trade, against 88.68 yen in New York on Tuesday.

The euro also slipped to 117.94 yen from 118.14 yen in New York and to $1.3313 from $1.3321.