Japan's Stocks Explode On QE News

Japanese stocks soared early Tuesday on Friday’s surprise news that Bank of Japan was expanding its monetary easing policy. The Nikkei closed up 2.73% after passing 17,000, the first time in seven years. Hong Kong’s Hang Seng is also in the green right now, up 0.04%.

After the Friday announcement the Nikkei closed up 4.83%.

The Nikkei has made an incredible comeback. During the mid-October sell-off, it was the worst-performing stock index of any advanced economy, down 10% from January. As of Tuesday’s close, it’s up 5.11% in 2014, so far.

The Financial Times quotes analysts at Nomura, who said: “The BoJ’s decision can be seen as an indication of a stronger commitment to the 2 per cent inflation target than we had previously thought, and also of the BoJ’s determination to act decisively and proactively in order to achieve this target.”

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