Japanese stocks soared to a seven-year high, as the Bank of Japan unexpectedly boosted easing and the nation’s pension fund prepared to unveil new asset allocations.
In Tokyo, the Nikkei 225 leaped 755.56 points, or 4.8%, to 16, 431.76, the highest since Nov. 2, 2007.
In Hong Kong, the Hang Seng index regained 296.02 points, or 1.3%, to 23,998.06.
Shares rose in the morning session after a Nikkei newspaper report that the $1.2-trillion U.S. Government Pension Investment Fund would announce new portfolio targets today, more than doubling its goal for domestic shares to 25% of assets. They surged in the afternoon after BOJ policy makers voted 5-4 to target an 80-trillion yen ($726-billion U.S.) annual expansion in the central bank’s monetary base.
The U.S. dollar rose to as high as ¥111.54 in Asia trade, its strength a boon for Japanese exporters because it makes goods sent overseas cheaper for foreign buyers. Late Friday in Asia, it traded near its level in January 2008, and was at ¥111.43, compared with ¥109.22 late Thursday in New York.
Real-estate and financial services companies led gains as all but one of the 33 industry groups on the Topix climbed.
Exporters and banks jumped. Toyota Motor Corp., the carmaker that gets 75% of sales abroad, surged 3.8%. Mitsubishi UFJ Financial Group Inc., Japan’s largest lender, gained 4% and Sumitomo Mitsui Financial Group Inc. rose 7.2%.
CHINA
Shanghai’s CSI 300 index gained 39.40 points, or 1.6%, to 2,508.33, thanks to strong bank earnings. Bank of China Ltd. was up 0.8% after it said that its third-quarter net profit rose 5% on-year, and Agricultural Bank of China jumped 0.8% after the lender announced a 6% gain in net profit over the same period.
In other markets;
Singapore’s Straits Times Index picked up 39.94 points, or 1.2%, to 3,274.25
The Taiex index in Taiwan zoomed 86.69 points, or 1%, to 8,974.76
Korea’s Kospi index moved higher 5.50 points, or 0.3%, to 1,964.43
New Zealand’s Exchange 50 added 17.65 points, or 0.3%, to 5,387.83
Australia’s S&P/ASX 200 gained 50.40 points, or 0.9%, to 5,526.60
