Asian markets raced ahead on Wednesday as investors cheered the Bank of Japan's decision to increase its quantitative easing programme.

The benchmark Nikkei 225 index rose 1.2% or 108 points to close at 9,232 in Tokyo following the BOJ's decision to extend its asset purchases by ¥10trn to ¥80trn.

Today's move from Japan's central bank comes just a week after the Federal Reserve's announcement of its bold quantitative easing measures to stimulate growth.

The yen fell after the BoJ announcement, helping key exporters to push ahead. Panasonic rallied 2.8%, shrugging off recent losses on concern about anti-Japan protests in China. Toyota motored 2% higher, Nissan rose 3.5% and Honda gained 2.8% to 2,674 yen.

Steel making giant JFE Holdings increased 2.2% in Tokyo after the BoJ's move to boost growth and cool the strong yen.

Elsewhere shares of Japan Airlines rose 1.2% on its first day of trading after its ¥663bn initial public offering.

In Hong Kong car related stocks also made a recovery after recent weakness. Dongfeng Motor rallied 3.4% on reports that many car operations at Chinese factories would resume today.

Commodity stocks also powered ahead following the BoJ's decision. Shares of gold miner Zijin Mining rose 5.5% while Aluminum Corp of China added nearly 1%.

The Hang Seng advanced 239 points at 20,841 in Hong Kong.




CJ

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