ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Economy

Tokyo stocks rebound after BOJ's stability pledge

Central bank's Kuroda issues unusual statement in face of coronavirus fears

Bank of Japan Gov. Haruhiko Kuroda on Monday reassured investors that the BOJ will keep financial markets liquid.   © Reuters

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.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends April 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media