Japanese stocks surge on central bank boosts, U.S. stimulus hopes

  • Reuters
  • Stock Market News
Japanese stocks surge on central bank boosts, U.S. stimulus hopes
Credit: © Reuters.

TOKYO, June 16 (Reuters) - Japanese stocks jumped on Tuesday, with the Nikkei gaining the most in nearly three months, after central banks in the United States and Japan offered measures to support corporate finances.

Sentiment was also boosted by a Bloomberg report that U.S. President Donald Trump was preparing a nearly $1 trillion infrastructure proposal to bolster the U.S. economy. benchmark Nikkei average advanced 4.88% to 22,582.21 .N225 , its biggest daily gain since March 25.

The Bank of Japan kept its monetary settings steady as widely expected but increased the nominal size of its lending packages for cash-strapped firms to $1 trillion from about $700 billion announced last month. move came after the U.S. Federal Reserve announced it would start purchasing corporate bonds on Tuesday as part of an already announced stimulus scheme. news reports about infrastructure spending in the United States and the BOJ expanding its support for corporate financing to 110 trillion yen, we're seeing a further rise in Tokyo stocks after the midday break," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

On the Nikkei index, all 225 shares advanced.

All of the Tokyo Stock Exchange's 33 industry subindexes also firmed, with the biggest gainers shippers .ISHIP.T and steelmakers .ISTEL.T jumping 8.62% and 8.85%, respectively.

Automaker's shares .ITEQP.T were also higher, with Honda Motor 7267.T up 7.73% and Toyota Motor 7203.T gaining 4.79%.

Mazda Motor 7261.T , Mitsubishi Motor 7211.T and motorcycle maker Yamaha Motor 7272.T all rose over 10.0%.

The broader Topix .TOPX gained 4.09% to 1,593.45.

Park 24 Co Ltd 4666.T was the largest decliner among Topix constituents after the car park operator reported its first loss since listing, hit by the stay-at-home trend due to the coronavirus outbreak.

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