Nikkei Index Closes Up About 5% Following Large-Scale US and Japan Economic Stimulus Measures (Comprehensive)

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The Japanese stock market closed up about 5%, buoyed by economic stimulus measures in the United States and Japan.

On the 16th at the Tokyo Stock Exchange, the Nikkei 225 index closed at 22,582.21, up 4.88% (1,051.26 points) from the previous day. This was the first time since March 25 (1,454 yen increase) that the rise exceeded 1,000 yen.

The TOPIX index closed at 1,593.45, up 4.09% (62.67 points).

Investor sentiment recovered as the U.S. Federal Reserve Board (FRB) began actively purchasing corporate bonds the day before. Additionally, U.S. President Donald Trump’s announcement of a review of a $1 trillion (approximately 1,200 trillion won) infrastructure investment as an additional measure to respond to COVID-19 also contributed to improving investor sentiment.

Furthermore, the Bank of Japan’s announcement of a large-scale monetary easing policy to stimulate the economy hit by the impact of COVID-19 also led the stock market upward.

Accordingly, hedge funds and individual investors rushed to repurchase, increasing the stock market’s gains. Although the rise was less than 400 yen after the market opened, it increased by 700 yen by the end of the morning session and exceeded 1,000 yen in the afternoon trading alone.