Asian markets wiped off their initial losses and turned positive after the Bank of Japan announced that it will continue to buy long-term government bonds.
Asian markets wiped off their initial losses and turned positive after the Bank of Japan announced that it will continue to buy long-term government bonds. The Japanese central bank also maintained the 0.1 per cent negative interest rate it applies to some of the excess reserves that financial institutions park with the central bank.
Japan’s Nikkei 225 index was trading around 293.38 points, or 1.78 per cent higher at 16,783.58 after the central bank decided to adopt a target for long-term interest rates in an overhaul of its massive monetary stimulus programme. Hang Seng and Shanghai were also trading higher by 0.77 per cent and 0.23 per cent, respectively. Kospi Composite index was trading 0.41 per cent up at 2033.96 in the afternoon trade.
In the early trade, Hang Seng, Nikkei and Shanghai were down by 0.21 per cent, 0.42 per cent and 0.13 per cent, respectively.
Bank of Japan also made it clear that it wants to control the yield curve. It set a ‘yield curve control’ under which the bank will purchase long-term government bonds to keep 10-year bond yields around current levels of zero per cent.
Back home, domestic equity markets were also trading nearly 0.50 per cent higher in the late morning trade. The 30-share index was trading 125.06 points, or 0.44 per cent, up at 28648.26, while Nifty 50 index was trading 39.70 points, or 0.45 per cent, up at 8815.60 (at 11.30 am).