Stocks rise as Bank of Japan boosts lending schemeTuesday 18 February 2014 07.42
Tokyo stocks jumped more than 3% by the close today after the Bank of Japan held off expanding its asset-buying programme, but said it would boost some lending schemes to stimulate borrowing.
The Nikkei-225 index soared 450.13 points to 14,843.24, while the Topix index of all first-section issues was up 2% percent, or 31.95 points, to 1,224.00.
Wrapping up a two-day policy meeting, the BoJ said it would keep its massive easing programme in place, in line with expectations.
However, it also decided to double the sum of loan schemes to banks in a bid to stimulate lending to firms and to finance growth-stoking projects such as environmental research and natural resources development.
That sent the yen tumbling in forex markets, a plus for shares of Japanese exporters.
"Obviously, the market welcomed the BoJ decision," said Kenzaburo Suwa, strategist at Okasan Securities.
"The fresh measures are unlikely to have a significant impact on the Japanese economy, but the market positively reacted to the fact that the Bank of Japan did take action," he added.