BoJ open-ended asset purchase decision ‘boosts commodities’

<p>Commodities have reached a three-month high following Japan’s latest policy shift.</p>

The decision by the Bank of Japan to bring in open-ended asset purchases from next year has resulted in a boost for most major commodities indices.

Japan's policy shift has lifted optimism that economic revival could be on the cards for Japan, meaning a demand for natural resources could be set to rise.

Indeed, today (January 22nd) has seen the Standard & Poor's GSCI index of 24 raw materials climbing 0.6 per cent to 664.62, with soybeans gaining 1.2 per cent and natural gas rising 2.1 per cent.

On the New York Mercantile exchange, US natural gas enjoyed gains of up to 2.2 per cent to take it to 3.645 per million British thermal units.

As part of Japan's policy shift, BoJ governor Masaaki Shirakawa and six other board members voted in favour of a two per cent inflation target. It is hoped such a move will play an important role in reviving the country's economy.

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