Japanese shares plunged after BoJ eased its policy

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Source: Dukascopy Bank SA
Japanese shares tumbled on Tuesday after the BoJ eased its monetary policy by increasing the size of the asset-purchasing programme by JPY138 billion. The move was widely expected. Stronger Yen despite anticipated stimulus measures pushed exporters lower. Weakness in Japanese stocks and an appreciation in the national currency suggested that the markets had priced in the decision of the BoJ ahead the actual announcement. The Nikkei 225 Index plunged 0.98% to close at 8,841.98. All sectors within the index dropped. The worst-performers were financials and basic materials. Shares of Bank of Yokohama, Fukuoka Financial Group and Resona HoldingsGroup sank 0.82%, 1.60% and 2.56%, respectively. Among basic materials, Denki Kagaku Kogyo and Mitsubishi Chemical Holdings slumped 1.22% and 0.65%. Honda sagged 2.75%, extending previous losses after the car producer cut its full-year profit target. Other car makers also retreated. Nissan Motor and Toyota Motor slid 2.54% and 0.50%. Mitsumi Electric was the top-loser, sinking 12.02 on reports of a likely loss in Q3.

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