Japanese shares boost to two-day winning streak on BOJ, GPIF
November 4, 2014 9:39 am
Japanese shares surged for the second consecutive day with the benchmark index reaching a six-year high at the close of trading on BOJ and GPIF monetary expansions.
The Topix Index added 2.6% to 1,368.65 at the end of trading in Tokyo, fresh from a holiday. The index reached a level last seen on June of 2008 following its 4.3% surge last October 31. The Nikkei 225 Stock Average surpassed the 17,000 mark in intraday trading before settling at a 2.7% increase to 16,862.47. The last time the gauge surpassed the 17,000 mark was in 2007. The nation’s currency was able to cut down its losses to match the dollar at 113.35 yen per dollar. Yesterday, the currency touched a near-seven year low.
Chief strategist at SMBC Friend Securities Co., Toshihiko Matsuno, commented to Bloomberg that the effects of the Bank of Japan monetary easing stimulus was big so that its impact cannot be contained in just one day. Matsuno adds that there is a risk in not holding Japanese shares as those who sold them would have to buy them back.
Last week, the Bank of Japan announced that voters voted 5-4 to increase monetary target expansion to 80 trillion yen or $726 billion. Earlier in the week, last week, stocks has already bolstered due to the $1.2 trillion pension fund increase to bolster shares following the stronger-than-expected US economic growth from the Government of Pension Investment Fund. The monetary hike may trigger a global liquidity increase spurring speculations of increased demand for assets with higher risks.
Yesterday, Asian stocks swung from gains and losses with the regional benchmark index stepping down from its month-high dragged by South Korean declines and China’s PMI data but bolstered by Japanese stimulus.
Today, Asian stocks surged with Japan’s Nikkei 225 crossing the 17,000 mark bolstered by the continuing stimulus from BOJ and GPIF monetary expansions.
The material has been provided by InstaForex Company – www.instaforex.com
Japanese shares surged for the second consecutive day with the benchmark index reaching a six-year high at the close of trading on BOJ and GPIF monetary expansions.
The Topix Index added 2.6% to 1,368.65 at the end of trading in Tokyo, fresh from a holiday. The index reached a level last seen on June of 2008 following its 4.3% surge last October 31. The Nikkei 225 Stock Average surpassed the 17,000 mark in intraday trading before settling at a 2.7% increase to 16,862.47. The last time the gauge surpassed the 17,000 mark was in 2007. The nation’s currency was able to cut down its losses to match the dollar at 113.35 yen per dollar. Yesterday, the currency touched a near-seven year low.
Chief strategist at SMBC Friend Securities Co., Toshihiko Matsuno, commented to Bloomberg that the effects of the Bank of Japan monetary easing stimulus was big so that its impact cannot be contained in just one day. Matsuno adds that there is a risk in not holding Japanese shares as those who sold them would have to buy them back.
Last week, the Bank of Japan announced that voters voted 5-4 to increase monetary target expansion to 80 trillion yen or $726 billion. Earlier in the week, last week, stocks has already bolstered due to the $1.2 trillion pension fund increase to bolster shares following the stronger-than-expected US economic growth from the Government of Pension Investment Fund. The monetary hike may trigger a global liquidity increase spurring speculations of increased demand for assets with higher risks.
Yesterday, Asian stocks swung from gains and losses with the regional benchmark index stepping down from its month-high dragged by South Korean declines and China’s PMI data but bolstered by Japanese stimulus.
Today, Asian stocks surged with Japan’s Nikkei 225 crossing the 17,000 mark bolstered by the continuing stimulus from BOJ and GPIF monetary expansions.
The material has been provided by InstaForex Company – www.instaforex.com
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