Asian Stocks at its Highest Close since May on BOJ

Bangalore: Good days have come for Asian companies since Asian stocks have risen with a regional benchmark index heading for its highest closing level ever since May 2012. Bank of Japan (BOJ) has boosted asset purchase fund to 55 trillion yen from 45 trillion yen, to join with the last week’s Federal Reserve moves to stimulate economic growth, Adam Haigh and Yoshiaki Nohara of Bloomberg News said in their report by surveying 21 analysts.

After the BOJ moved to avert a rising yen from undermining an economic recovery, JFE Holdings, Japan’s second largest steel-maker, climbed 2.3 percent. Meanwhile, Nissan Motor advanced 3.4 percent to 725 yen, recovering from the yesterday’s loss, as the company has resumed its production in China after the violent protests that targeted Japanese companies over control of a group of Islands. Japan Airlines, on the other hand, climbed 1.2 percent on its first day of trading following the largest initial public offering.

Reaching the highest close since May 4, 2012, the MSCI Asia Pacific Index advanced to 0.6 percent to 123.86. The gauge has gained reflecting the speculation that central banks will step up measures to promote global economic growth. Another one to show rise is Japan’s Nikkei 225; the Stock Average rose 1.6 percent and the Topix Index also gained 1.2 percent rise. Japan Airlines (JAL) advanced 1.2 percent to 3,835 yen, which returned to the stock exchange following a bankruptcy.

The Chief Strategist at the Tokyo-based Dalwa SB Investments, Soichiro Monji said, “The BOJ seems to have gone above and beyond. I didn’t expect them to move this time”. The company manages the equivalent of about 5 trillion yen ($64 billion).