Japan’s central bank has surprised markets by announcing an expansion of its monetary stimulus policy.
The Bank of Japan said it would increase its asset buying plan to annual pace of 80 trillion yen ($726bn; £454bn) a year, up from the previous rate of 60-70 trillion yen.
Japan’s economy is currently experiencing weak growth and inflation.
The BOJ’s move pushed the Nikkei share index up 4.8% to 16,413.76, its highest close for nearly seven years.
On the currency markets, the dollar rose 1.2% to 110.68 yen, the highest rate since January 2008.
The bank’s decision to increase its stimulus measure comes in the same week that the US Federal Reserve ended its policy of quantitative easing.
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