Asia: Stocks gain after Bank of Japan boosts stimulus
Asian stocks ended higher after Japan's central bank unexpectedly expanded its monetary-easing plan in a bid to revive growth.
The Bank of Japan (BoJ) said it would increase its bond buying programme to 80trn yen a year, up from the Y60trn-70trn level which has been in place since April 2013.
The decision by policymakers, which only passed by five votes to four, came after Japanese gross domestic product sank by an annualised 7.1% in the second quarter of 2014 following a sales-tax hike from 5% to 8% which curbed consumer spending in April. This was the worst quarterly contraction since the earthquake and tsunami in 2011.
"Japan's economy has continued to recover moderately as a trend and is expected to continue growing at a pace above its potential," the BoJ said in a statement on Friday.
"However, on the price front, somewhat weak developments in demand following the consumption tax hike and a substantial decline in crude oil prices have been exerting downward pressure recently," it said.
The news pushed Japan’s Nikkei 225 up 4.83%. Hong Kong’s Hang Seng index rose 1.25% and Shanghai advanced 1.22%.
The dollar rose 2.33% against the yen following the Japanese data and BoJ statement.