Investing.com - Asian stock markets were broadly higher during late Asian trade on Wednesday, as market sentiment was boosted after the Bank of Japan increased the size of its asset-purchase program, making it the latest major central bank to announce action to shore up slowing global economic growth.
Last week, the Federal Reserve announced a third round of quantitative easing under which it will purchase USD40 billion a month in mortgage-backed securities until the economy shows significant improvement.
During late Asian trade, Hong Kong's Hang Seng Index jumped 1.2%, Australia’s ASX/200 Index ended up 0.5%, while Japan’s Nikkei 225 Index rallied 1.2%.
Shares in Tokyo rallied to the highest level since early May after the BoJ boosted the size of its asset-purchase program by JPY10 trillion, in an effort to boost slowing economic activity and to counter the strengthening yen.
The JPY10 trillion increase in the asset-purchase program will be split equally towards additional purchases of treasury discount bills and Japanese government bonds, the central bank said in a statement.
The central bank also left its policy interest-rate target unchanged in the current range of zero to 0.1%
Shares in major Japanese exporters traded higher following the decision, with automakers Mazda and Honda surging 5% 2.7% respectively, while shares in consumer electronic makers Canon and Sony added 1.75% and 2.75% apiece.
Elsewhere, in Hong Kong, the Hang Seng was boosted by strong gains in major Chinese lenders.
Industrial and Commercial Bank of China shares jumped 3%, China Construction Bank added 2.4% and Bank of China rose 2.1%.
Index heavyweight HSBC Holdings traded up 1.4%. Europe’s largest lender commands a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Meanwhile, in Australia, the benchmark ASX/200 Index edged higher on the back of strong gains in miners.
Iron ore maker Fortescue Metals extended the previous session’s 17% rally by gaining an additional 5% on Wednesday, a day after announcing that it secured a USD4.5 billion loan to pay down debts.
Looking ahead, European stock market futures pointed to a mildly higher open, as investors were cautious amid uncertainty over whether Spain is about to ask for more financial aid.
The EURO STOXX 50 futures pointed to a gain of 0.3% at the open, France’s CAC 40 futures added 0.5%, London’s FTSE 100 futures eased up 0.1%, while Germany's DAX futures pointed to a gain of 0.3% at the open.
Later in the day, the U.S. was to publish official data on building permits and on housing starts, followed by government data on crude oil stockpiles, as well as an industry report on existing home sales.
Last week, the Federal Reserve announced a third round of quantitative easing under which it will purchase USD40 billion a month in mortgage-backed securities until the economy shows significant improvement.
During late Asian trade, Hong Kong's Hang Seng Index jumped 1.2%, Australia’s ASX/200 Index ended up 0.5%, while Japan’s Nikkei 225 Index rallied 1.2%.
Shares in Tokyo rallied to the highest level since early May after the BoJ boosted the size of its asset-purchase program by JPY10 trillion, in an effort to boost slowing economic activity and to counter the strengthening yen.
The JPY10 trillion increase in the asset-purchase program will be split equally towards additional purchases of treasury discount bills and Japanese government bonds, the central bank said in a statement.
The central bank also left its policy interest-rate target unchanged in the current range of zero to 0.1%
Shares in major Japanese exporters traded higher following the decision, with automakers Mazda and Honda surging 5% 2.7% respectively, while shares in consumer electronic makers Canon and Sony added 1.75% and 2.75% apiece.
Elsewhere, in Hong Kong, the Hang Seng was boosted by strong gains in major Chinese lenders.
Industrial and Commercial Bank of China shares jumped 3%, China Construction Bank added 2.4% and Bank of China rose 2.1%.
Index heavyweight HSBC Holdings traded up 1.4%. Europe’s largest lender commands a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Meanwhile, in Australia, the benchmark ASX/200 Index edged higher on the back of strong gains in miners.
Iron ore maker Fortescue Metals extended the previous session’s 17% rally by gaining an additional 5% on Wednesday, a day after announcing that it secured a USD4.5 billion loan to pay down debts.
Looking ahead, European stock market futures pointed to a mildly higher open, as investors were cautious amid uncertainty over whether Spain is about to ask for more financial aid.
The EURO STOXX 50 futures pointed to a gain of 0.3% at the open, France’s CAC 40 futures added 0.5%, London’s FTSE 100 futures eased up 0.1%, while Germany's DAX futures pointed to a gain of 0.3% at the open.
Later in the day, the U.S. was to publish official data on building permits and on housing starts, followed by government data on crude oil stockpiles, as well as an industry report on existing home sales.