Comment on Japan's Nikkei leads Asian stocks higher

Japan's Nikkei leads Asian stocks higher

BANGKOK (AP) — Japan's Nikkei stock index posted solid gains Tuesday on hopes for more monetary stimulus and helped pull markets up elsewhere in Asia. Economists had expected to see more than an annualized growth rate of 2.6 percent for the April-June quarter, given the size of the Bank of Japan's stimulus program and public spending called for under "Abenomics," the aggressive program undertaken by Prime Minister Shinzo Abe to jumpstart the moribund economy. The BOJ is expanding the monetary base by about 60 trillion yen ($606 billion) to 70 trillion yen ($707 billion) over two years by mopping up Japanese government bonds. "Fading expectations of more aggressive monetary easing by the Bank of Japan have been perhaps the most important factor behind the recent partial recovery in the yen and associated weakness in the Nikkei," said analysts at Capital Economics in a market commentary. Despite rising commodities prices, some Australian mining stocks fell as investors sold off shares that have enjoyed recent gains, said Stan Shamu, market strategist at IG in Melbourne, Australia.

 

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