The aggressive monetary easing embarked upon by the Bank of Japan with the aim of boosting the country’s economy saw the yen slip for a third successive day against the U.S. dollar on Monday, as U.S. hot stocks gained with moderate growth in view as an earnings season begins.
The BOJ last week made public the new measures to be taken as part of its effort to beat persistent deflation battling the Japanese economy. The commencement of bond purchases by the central bank since its latest announcement has seen the dollar reach a near four-year high against the yen, while the euro has climbed to a three-year high against the currency.
According to the BOJ, it plans to purchase government bonds worth 1 trillion yen, or $10 billion, with between five and 10 years maturity periods. The central bank will also buy bonds worth 200 billion yen with maturities put at more than 10 years.
Last Thursday, BOJ Governor Haruhiko Kuroda revealed plans to pump around $1.4 trillion into the Japanese economy within two years. The announcement has led to stocks in the Asian country experiencing gains.
Early on Monday, Wall Street was down as investors look ahead to the start of the quarterly earnings season; stocks improved toward the end of the day. Expected S&P 500 earnings have been scaled back to 1.6 percent profits from a year before, slipping from the January forecast of 4.3 percent, according to Thomson Reuters.
The Standard & Poor’s 500 Index improved 0.62 percent to 1,562.94. Advanced Micro Devices was the leading percentage price gainer with 13 percent to reach $2.59.
The Dow Jones Industrial average was at 14,612.56, climbing 0.32 percent. The NASDAQ Composite Index gained 0.57 percent to 3,222.26.
The S&P 500 had its highest weekly decline in 2013 last week, while MSCI’s world equity index posted its worst weekly performance this year on Friday with a 1.26 percent, five-day loss. The MSCI index climbed 0.4 percent to 356.91.