Overseas Trading: Japan Stimulus Surprise Sparks Global Rally

The Bank of Japan's (BOJ) decision for negative interest rates has led to outsized gains in global markets

by Josh Selway

Published on Jan 29, 2016 at 8:42 AM

A fresh round of central bank intervention lifted Asian stocks today. The most notable action came from the Bank of Japan (BOJ), which lowered its key interest rate to negative 0.1%. The move sent the yen tumbling -- and Japan's 10-year bond yield to a record low -- with the Nikkei settling with a 2.8% lead. Meanwhile, China's central bank infused markets with an additional 100 billion yuan and the Shanghai Composite closed with a 3.1% advance. Hong Kong's Hang Seng also added 2.5%, and South Korea's Kospi closed 0.3% higher. 

Bourses in Europe are also moving higher at midday. Aside from the well-received news out of Asia and a strong lead from Wall Street, rising oil futures and an uptick in eurozone inflation are lending to a risk-on attitude. Additionally, banking names across the region are enjoying notable gains. At last check, London's FTSE 100 was 1% higher, with Germany's DAX and France's CAC 40 adding 0.4% and 0.6%, respectively. 


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