Discontinuing the loss it suffered yesterday, Japanese stocks jumped today amidst the news that the central bank in Asia’s second biggest economy signaled its lavish monetary stimulus which according to investors could continue for longer than the two years anticipated by markets. On a better trading day, the benchmark Nikkei 225 index closed 2.9 percent higher at 14,865.67.
The Bank of Japan also released minutes of its January policy meeting wherein board members said that in order to avoid any misunderstanding about the BOJ’s program of ambitious monetary easing; it needs to provide a clear explanation that it did not strictly set this to end in two years. The release on the bank’s part helped investors’ sentiment go up.
ForexMinute has earlier reported that Japan is sincere about its economic recovery and for that the central bank in April last year announced a policy overhaul. The policy was meant to double the money supply and achieve 2 percent inflation within about two years; however, as that not seem plausible considering the current state of economy, the bank is willing to extend the stimulus.
Most of the Regional Market up in Asia
An upward movement in the Japanese stock market also gave impetus to global investors and helped benchmarks notch up smaller gains. Whereas Britain’s FTSE 100 rose 0.4 percent to 6,843.30, there was a slight growth in Germany’s DAX which gained 0.1 percent to 9,630.43. A similar trend was seen in France’s CAC 40 which added 0.1 percent to 4,359.37.
On the other hand, even the US stocks were poised to rise wherein Dow futures were up 0.2 percent to 16,128.00. A similar trend was seen in the broader S&P futures which gained 0.1 percent to 1,838.50. Discontinuing the loss making trade yesterday, Asian markets ended mostly higher today wherein the major gainers were South Korea and Hong Kong.
Whereas South Korea’s Kospi gained 1.4 percent to close at 1,957.83, the growth for Hong Kong’s Hang Seng was 0.8 percent as it closed at 22,568.24. A similar positive trend was seen in Australia’s S&P/ASX 200 which advanced 0.5 percent to 5,438.70. However, there was not much influence in the Shanghai Composite Index as it dropped 1.2 percent to 2,113.69.
There was not much for traders in energy trading as benchmark crude for April delivery was down 9 cents to $102.66 a barrel in electronic trading on the New York Mercantile Exchange.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org