However, investors continued to punish stocks, with the key Nikkei 225 crashing over 10 per cent, reportedly the worst fall in nearly four decades.
Bank of Japan (BoJ) extended a whopping ¥8 trillion (about US$98 billion) and an amount of ¥3 trillion stimulus was unveiled later in the day, amid reports of rising radiation.
This would be on top of ¥15 trillion extended on Monday.
BoJ’s initiatives are primarily aimed at ensuring that banks have enough liquidity for lending.
Investors went on a selling spree for the second straight trading session, as Nikkei 225 plunged 10.55 per cent to 8,605.15 points. On Monday, shares tumbled over 6 per cent.
“Japan’s economy is expected to return to a moderate recovery path. However, damage of the earthquake has been geographically widespread, and thus, for the time being, production is likely to decline and there is also concern that the sentiment of firms and households might deteriorate,” BoJ said.