Nikkei Closes At Seven Year High After BOJ Stimulus

Tokyo stocks soared Friday, with the Nikkei stock index ending at its highest level in around seven years, after the Bank of Japan decided to expand its massive asset purchase program.

The 225-issue Nikkei Stock Average ended up 755.56 points, or 4.83 percent, from Thursday at 16,413.76, its highest finish since Nov. 2, 2007. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished up 54.74 points, or 4.28 percent, at 1,333.64.

The Tokyo market started on a firm note on the heels of an overnight rise in U.S. stocks stemming from the country’s strong gross domestic product data.

Also supporting the market was a news report that Japan’s Government Pension Investment Fund could announce its new investment portfolio as soon as Friday, said Nobuhiko Kuramochi, chief strategist at Mizuho Securities Co.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza