Asian Stocks at its Highest Close since May on BOJ

China Policy

According to a commentary published in the Financial News, Zhou Xiaochuan, the Governor of People’s Bank of China said that the Chinese central bank will maintain the continuity and stability of its monetary policies. Along with that, it will make adjustments that are more forward-looking, targeted and effective, he added.

Though the biggest car-makers of Japan—Toyota Motor, Nissan and Honda Motor—had to halt their production at Chinese plants, following the attacks on their dealerships in the eastern Chinese port city of Qingdao, they could show a rise in the stock market. Toyota climbed 2.2 percent to 3,265 yen, Nissan Motor advanced 3.4 percent to 725 yen and Honda Motor rose 2.6 percent to 2,672 yen.

It was automakers among the Japanese companies that suffered most in the diplomatic crisis. Suzuki, Mitsubishi Motors and Mazda Motor officials said they were also assessing the situation in China. The dispute between the two nations had been putting at risk the bilateral trade in goods ranging from rice to tractors that showed a hike throughout the past decade and has tripled to more than $340 billion. The tensions are further complicating the policy makers’ efforts to fortify growth in the countries, the biggest economies in Asia as the European debt crisis weakens export demands.