"It [increased bond purchases between Japan, China and South Korea] would have the effect of reducing volatility"
- Choi Seok Won, head of research at Hanwha Securities Co.
Japan, China and South Korea agreed to increase investment in each others' bonds with the aim to diversify foreign-exchange reserves.
"Today's statement from the three countries shows the governments' will to enhance the status of Asian currencies by encouraging investment within the region," said Choi Seok Won, head of research at Hanwha Securities Co. in Seoul.
"It would have the effect of reducing volatility" from "money coming in and out from other regions."
Banks in Japan were closed on Thursday in observance of Constitution Day.
Japanese stocks edged higher on Wednesday, after a report showed U.S. manufacturing expanded more than forecast in April. The Nikkei 225 gained 0.31%, or 29.30 points, to 9,380.25. The broader Topix rose 0.43%, or 3.38, to 792.87.
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