Japan has one of the largest economies in the world, more precisely it has the third-largest economy after the U.S. and China. Interestingly, the U.S. retains the status of the largest economy for decades.
Recently, the country’s central bank made the decision that affected the stocks across the Asia Pacific. Moreover, the Bank of Japan announced a series of measures to cope with problems caused by coronavirus pandemic.
The central bank plans to purchase more commercial paper as well as corporate bonds. Furthermore, the Bank of Japan plans to continue buying Japanese government bonds and treasury discount bills.
Also, the country’s central bank decided to keep the short-term policy interest rate target at -0.1%. Moreover, the central bank also promised to keep 10-year Japanese government bond yields around 0%.
The Economy of Japan and stocks
It was a good day for the world’s third-largest economy as Japanese stocks saw gains on April 27. The Nikkei 225 gained 2.71% to close at 19,783.22 as the shares of robot maker Fanuc jumped 11.95%.
Notably, Fanuc released financial results for the year that ended in March 2020. This information had a positive impact on the shares of Fanuc.
Moreover, the Topix index gained 1.83% to finish its trading day at 1,447.25.
Importantly, mainland Chinese stocks also improved their positions. The Shanghai Composite gained 0.25% to about 2,815.49. Meanwhile, the Shenzhen composite rose slightly to 1,738.05.
South Korea’s Kospi index added 1.79% to close at 1,922.77. Also, Australia’s S&P/ASX 200 gained 1.5% to 5,321.40.
The Bank of Japan is ready to take measures to support the world’s third-largest economy. As can be seen from the information stated above, the central bank implemented measures to overcome the issues related to coronavirus pandemic. Hopefully, the Bank of Japan is not alone when it comes to supporting the local economy. Central banks around the world also introduced various measures to help the economy.