Overseas Trading: Nikkei, Bank Stocks Shine After BoJ Decision

The Bank of Japan (BoJ) left interest rates unchanged, but announced a new focus on yield curve control

by Josh Selway

Published on Sep 21, 2016 at 8:41 AM
Updated on Sep 21, 2016 at 8:43 AM

Stocks closed higher in Asia, following the latest policy decision from the Bank of Japan (BoJ). Specifically, the central bank chose to leave the deposit rate unchanged, but announced a new policy focused on controlling the yield curve of 10-year government bonds. What's more, the BoJ said it will continue its current quantitative easing efforts -- choosing to forego deepening negative interest rates or expanding asset purchases -- to hit its 2% inflation target. The move had Japan's Nikkei 1.9% higher by the close, thanks to a broad rally from bank stocks. 

In China, the Shanghai Composite posted less impressive gains, settling just 0.1% higher. Meanwhile, Hong Kong's Hang Seng ended up 0.6%, and South Korea's Kospi added 0.5%. 

European stocks are also on the rise following the BoJ decision, as the attention now turns to the Fed policy decision out of the U.S. later today. Bank and insurance stocks, in particular, are getting a boost from the news out of Japan. Looking at the indexes, France's CAC 40 and Germany's DAX are each enjoying 1.1% gains, while London's FTSE 100 is up a more modest 0.3%. 
 

Overseas Trading September 21

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical  levels, and top economic stories straight to your inbox. 


A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Huge New Legal Marijuana Market Has Shortage Crisis
250 million Europeans have access to medical marijuana. There's already a shortage....
J M Smucker Stock Jammed by Ugly Sales Outlook
J M Smucker's fourth-quarter profits and revenue were better than Wall Street expected
NIO Rises on Record-Breaking Deliveries
Nio stock hit a record high in vehicle deliveries for May
The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.