Nikkei jumps after BOJ, Asian shares mostly softer

Discussion in 'General Trading Discussion' started by admin, Feb 18, 2014.

  1. admin

    admin Administrator Staff Member

    Feb 2014
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    Japanese shares surged and the yen sagged on Tuesday after the Bank of Japan doubled loan programs aimed at stimulating bank lending and economic growth, while most other Asian shares were softer after solid gains in recent sessions.

    European shares were expected to be mixed after hitting a three-week high the previous day, with Germany's DAX (.GDAX)> seen rising 0.1 percent and Britain's FTSE (.FTSE) falling 0.1 percent.

    S&P stock futures pointed to a slightly firmer tone on Wall Street as U.S. markets were set to reopen after a three-day weekend.

    Japan's Nikkei average (NIK:9452) rose as much as 3.5 percent after the BOJ extended and expanded special loan facilities aimed at driving more funds through the banking sector to borrowers.

    The extension had been expected as the schemes were set to expire in March.

    "Speculators jumped on the news but if you think carefully, it's questionable if this will justify a big rally in the Nikkei," said Norihiro Fujito, senior strategist at Mitsubishi UFJ Morgan Stanley Securities.

    The BOJ also kept its main asset purchase policy target unchanged as expected.

    The dollar jumped 0.7 percent on the yen to hit a two-week high of 102.745 yen in sympathy with the gains in Japanese shares.

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