Japan Stocks Rise After BOJ Decision Sends Markets on Wild Ride

The BOJ raised its target for purchases of ETFs to 6 trillion yen ($58 billion), while a dollar-lending program was expanded to $24 billion. The central bank kept its annual target for expanding the monetary base at 80 trillion yen, done mainly through an equivalent increase in government bond holdings. It also left untouched the minus 0.1 percent rate for a portion of commercial banks’ reserves.
“The increase in its ETF purchases will push share prices up, but the amount of 6 trillion yen was within expectations,” said Koji Uchida, chief fund manager in the equity division at Mitsubishi UFJ Asset Management Co. in Tokyo. “However, once they start actually buying the ETFs, the market will gradually rise.