Stocks soar as yen dives after BOJ stimulus
TOKYO – Japanese stocks soared as the yen dropped after the Bank of Japan (BOJ) doubled a growth funding facility, while sticking with its plan for unprecedented asset purchases.
The central bank doubled a growth funding facility to 7 trillion yen (S$86.5 billion) and said individual banks could borrow twice as much low-interest money as previously under another lending programme. The BOJ extended the timeframe of both programmes by a year, it announced at the conclusion of a two-day meeting yesterday.
It left unchanged a pledge to expand the monetary base by 60 trillion to 70 trillion yen per year.
The yen weakened to as low as 102.74 against the US dollar after the BOJ’s announcement and was trading at 102.54 at 4.15pm in Tokyo, down 0.6 per cent.