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Japans Nikkei 225 index soars over 5% after BoJ easing
The benchmark Nikkei 225 index jumped 5.09 percent to 16,455. After a one-day meeting, policymakers said they would add up to 20 trillion yen to the central bank's current asset-buying scheme, bringing it to 80 trillion yen annually. The yen plunged to an almost seven-year low of 110.49 against the dollar following the BoJ decision to pump even more money into the economy after a second-quarter contraction. A weak yen is good for Japanese exporters as it makes them more competitive abroad and inflates their repatriated profits. In morning trade before the BoJ announcement, stocks had risen 1.68 percent as forecast-beating US growth data offset another poor set of domestic economic indicators. Investors also cheered reports that Japan's national pension fund, the world's largest, will double the amount of equities it holds in its investment portfolio as it seeks out higher returns to cope with an ageing population. A raft of September economic data released early Friday showed a 5.6 percent drop in household spending, inflation slowing and unemployment rising. Dealers were in buying mood as the dollar jumped against the yen in response to data showing US economic growth expanding at an annualised 3.5 percent in July-September, against estimates of a 3.0 percent rise.

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