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 Jun 24, 2020 at 10:16 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

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