The Australian sharemarket has closed flat as investors gave a muted response to the Bank of Japan's plan for a more expansionary 2 per cent inflation target.
At 4.15pm AEDT today, the benchmark S&P/ASX 200 index was up 1.6 points, or 0.03 per cent, at 4779.1 points, and the broader All Ordinaries index was 0.7 points, or 0.01 per cent, higher at 4802.9 points.
On the ASX 24, the March share price index futures contract lifted two points to 4745 points, with 25,247 contracts traded, preliminary calculations show.
The Bank of Japan said it would conduct "open-ended" asset purchases to help end a long period of deflation, and described its inflation goal as a "price stability target".
Still, Bell Direct market analyst Julia Lee said the Australian market had already expected the news, following a meeting of Japan's central bank.
"It's good news for the Japanese economy but the market has priced in the news," she said.
Of the big banks, National Australia Bank shares finished almost one per cent weaker after Spanish giant Santander had denied it was interested in buying its troubled British banks.
Investors had pushed NAB shares up yesterday after London's Sunday Times reported that Santander was considering making a £2 billion ($3.04bn) offer for the Yorkshire and Clydesdale banks.
But the share price dived after a Santander spokesman denied the report.
NAB shares lost 26c, or 0.97 per cent, to finish the session at $26.59.
ANZ also went backwards, shedding 3c, or 0.12 per cent, to finish at $25.66.
But the Commonwealth Bank inched up by 34c, or 0.55 per cent, to end at $62.54 while Westpac added 1c, or 0.04 per cent, to touch $26.49.
In resources, Macmahon Holdings initially soared more than 15 per cent after the mining contractor sealed a $1.8bn deal with Fortescue Metals Group.
The five-year contract is the biggest ever signed by Macmahon in the mining services sector and will see it provide services to help Fortescue expand its Christmas Creek iron ore mine in Western Australia's Pilbara region.
Shares in Macmahon finished up 1.5c, or 5.88 per cent, to hit 27c while Fortescue shares ended 11c higher at $4.64.
Meanwhile, household appliances and cleaning products supplier GUD Holdings booked a 21 per cent fall in first half net profit, as its Sunbeam appliances brand struggles against competition.
GUD today booked a net profit for the first half of the 2012-13 financial year of $18.19 million, down from $23.04m in the the prior corresponding period.
Its shares finished 15c, or 1.79 per cent, lower at $8.24.
Preliminary national turnover was 1.724 billion shares worth $3.310bn, with 398 stocks up, 538 down and 368 unchanged.
