Global shares jump, yen slumps as BOJ cranks up stimulus | Reuters.
(Reuters) – World shares jumped and the yen fell to a seven-year low against the dollar on Friday as the Bank of Japan surprised financial markets by significantly expanding its massive stimulus program.
In a rare split decision, the BOJ’s board voted 5-4 to accelerate purchases of Japanese government bonds so that its holdings increase at an annual pace of 80 trillion yen ($725 billion), up by 30 trillion yen.
The central bank also said it would triple its purchases of exchange-traded funds and real-estate investment trusts (REITs), while sources said the government’s huge pension fund would more than double its holdings of domestic stocks.
For investors, the timing of the moves sent a strong signal, coming right as six years of aggressive U.S. stimulus come to an end and just before euro zone inflation data that is likely to keep the pressure on the ECB to further ease its policy.
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