Asian stock markets increased in early trading this morning (September 19th) after the Bank of Japan (BoJ) announced its plans to drive economic growth.
Becoming the latest major central financier to unveil intentions to take action, the body said it is extending monetary easing by increasing its asset purchasing fund to 55 trillion yen (£428 billion).
As a result, EuroStoxx 50 Index Futures gained 0.3 per cent, while the MSCI Asia Pacific (MXAP) Index rose 0.5 per cent as Standard & Poor's 500 Index futures grew by 0.4 per cent.
The move follows a similar announcement by the US Federal Reserve to stimulate improvement with the use of quantitative easing, which will see the financier purchase an average of US$40 billion a month in mortgage-backed securities.
Soichiro Monji, chief strategist at Tokyo-based Daiwa SB Investments, told Business Week: "The BOJ seems to have gone above and beyond … I didn't expect them to move this time."
Learn all about CFD trading strategies and the stock market at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.