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Japanese shares soar on Bank of Japan stimulus

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Japanese shares soar on Bank of Japan stimulus
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Japanese investors have given a further thumbs up to the Bank of Japan’s unexpected stimulus moves announced at the end of last week, which have pushed the yen down down to an almost seven-year low against the dollar.

The Nikkei share average in Tokyo hit its highest level since 2007 on Tuesday, climbing 2.7 percent. The index surged 4.8 percent on Friday, marking its biggest daily gain in eighteen months.

Turnover at the Tokyo Stock Exchange’s main board was the second highest on record.

The broader Topix index rose 2.6 percent on Tuesday.

Markets were closed on Monday for a public holiday.

The biggest gainers on Tuesday were financial and property companies. Daiwa Securities surging 12.3 percent. Nomura Holdings jumped 7.7 percent and Tokyu Fudosan shot up 7.1 percent.

The stimulus includes much more bond buying by the Bank of Japan and plans by the country’s public pension fund to purchase more domestic shares.

Repercussions from the yen’s broad depreciation were felt in South Korea, where exporters extended losses on worries that a softer Japanese currency would erode their price competitiveness relative to Japanese rivals. South Korean shares were down 0.9 percent on Tuesday.

with Reuters