Central Banks and Stocks in Asia on June 16

Recent announcements by the central banks of Australia, Japan, as well as the U.S. helped to boost stocks. Let’s have a look at the announcements. For example, based on the information provided by the Reserve Bank of Australia, the board underlined the importance of fiscal and monetary policy in the country. Moreover, those measures helped to support the economy during this difficult period.

Importantly, the Bank of Japan decided to keep its main policy tools. According to the statement released by the Bank of Japan, the country’s economy is expected to remain in a severe condition for the time being due to the coronavirus pandemic. Furthermore, the central bank highlighted the economic impact of the coronavirus pandemic.

Two days ago, the U.S. Federal Reserve announced more measures to support the market. Notably, the central bank made the decision to buy individual corporate bonds.

Interestingly, Monday’s announcement by the central bank marked an expansion into the secondary market. Hopefully, central banks around the world are working hard to avoid the world financial crisis.

Stocks on June 16

As stated above central banks are working hard to deal with the problems associated with coronavirus pandemic. Hopefully, stocks in Asia strengthened their positions on Tuesday as investors reacted to recent announcements by central banks.

For example, Japanese stocks saw gains on the day. The Nikkei 225 gained 4.88% to close at 22,582.21 as shares of robot maker Fanuc jumped 6.74%. Meanwhile, the Topix index added 4,09% to finish its trading day at 1,593.45.

Also, South Korea’s Kospi index gained 5.28% to close at 2,138.05.

Hong Kong’s Hang Seng index added 2.39% to close at 24,344.09.

The Shanghai Composite advanced 1.44% to around 2,931.75. At the same time, the Shenzhen Component added 1.847% to approximately 11,398.97.

Last but not least, stocks in Australia saw robust gains on Tuesday. The S&P/ASX 200 gained 3.89% to close at 5,942.30.