Markets surge again on Japan money printing
9 April 2013 1:51am
ASIAN and European equities performed strongly yesterday as the impact of a huge new round of money printing in Japan continued to surge through global markets.
The Bank of Japan’s shock announcement that it would seek to almost double the monetary base to 270 trillion yen (£1.79 trillion) over less than two years boosted markets on Friday and is still having a positive effect on sentiment.
The huge new round of money printing pushed the yen down to a four-year low. It slid 1.41 per cent against the dollar and 1.48 per cent against the euro yesterday. Stocks on the Nikkei 225 rose 2.8 per cent and the FTSE 100 increased 0.34 per cent.
The new governor of the Bank of Japan, Haruhiko Kuroda, had been appointed explicitly to loosen monetary policy further, and the scale of the move means analysts expect sustained easing.
“We now expect the yen to weaken as far as 110 to the dollar by the end of the third quarter of this year and to 120 in 2014, based on the relative prospects for monetary policy in Japan and elsewhere,” said Capital Economics’ Julian Jessop.
He suspects the new round of quantitative easing may still not be enough to hit the Bank’s new two per cent inflation target.
“The commitment to do whatever it takes to end deflation would then simply increase the chances of further monetary easing on top of what has already been promised,” he said.
In other news
Greece’s interior minister has said that the country cannot afford its 5 June payment to the International Monetary [Read more]
Young people aged 16 and 17 years old should be given the chance to vote in a EU referendum, according to the [Read more]
The Bank of England is carrying out a confidential investigation into what would happen if the UK left the European [Read more]
This year's Eurovision Song Contest will feature an addition to the normal line up – for the first time ever, [Read more]
Tonight is the 60th Eurovision Song Contest, and once again we're in for an evening of cheesy music and crazy [Read more]
The Eurovision Song Contest is getting more and more expensive, despite Europe's decline into austerity. [Read more]
There were delays of up to 30 minutes to trains in and out of Kings Cross Station, after the station was re-opened [Read more]
When a 20-year-old footballer publicly declares he wants to leave a club and his agent hurls insults at one of [Read more]
The outbreak of bird flu in the US is leading to an unprecedented situation for companies reliant on eggs – [Read more]
Germany's finance ministry has denied reports it was considering offering Greece its own parallel currency. [Read more]
Chancellor George Osborne was given a boost today, as higher tax receipts helped shrink the deficit by more than [Read more]
Beleaguered spread-betting firm Plus500 today suspended trading in its shares on London's junior market, following [Read more]
The news that card and electronic transactions have overtaken cash as the UK’s preferred method of payment is [Read more]
Despite the crippling effect of election uncertainty, offers received in April were up 15 per cent on last year [Read more]
Former secretary of state for communities and local government Eric Pickles is to be knighted, 10 Downing Street [Read more]
Network Rail engineers have destroyed the Abbey Wood station as part of the Crossrail development that is expected [Read more]
The Championship looks set to once again be named the fourth most-watched league in Europe, following a seven [Read more]