TOKYO -- BOJ Gov. Haruhiko Kuroda on Monday gave investors a reason not to fear the coronavirus outbreak, issuing a statement declaring that the central bank "will strive to provide ample liquidity and ensure stability in financial markets through appropriate market operations and asset purchases."
As the epidemic spreads globally, so does concern that destabilized financial markets will negatively impact the real economy.
It is the first time for a Bank of Japan governor to release a statement of this kind since a June 2016 joint statement by Kuroda and Finance Minister Taro Aso, which came after U.K. voters chose to leave the European Union.
At 10 a.m., the BOJ also said it was using a gensaki arrangement to buy 500 billion yen worth of government bonds, its first such operation since 2016, spurring repurchases of futures contracts.
In a gensaki arrangement, the buyer promises to sell back the bonds after a specified period.
As part of its ultraloose monetary policy, the BOJ has continued to buy JGBs at a pace of around 80 trillion yen a year. It has also been buying exchange-traded funds at a pace of 6 trillion yen a year. Kuroda's statement is aimed at holding back panic in financial markets.
Tokyo shares rose Monday after the Bank of Japan joined other central banks in pledging all-out efforts to ensure market stability.
The Nikkei Stock Average ended up 201.12 points, or 0.95%, from Friday at 21,344.08.