Japanese stocks surge over 5 pc; BoJ injects 3.5 trn yen more

Japanese stocks surge over 5 pc; BoJ injects 3.5 trn yen more

Bank of Japan today pumped in 3.5 trillion yen (USD 43 billion), taking the total amount of stimulus injected into the system in three days to a staggering 26.5 trillion yen (about USD 324 billion).

Nikkei 225 shot up 5.68 per cent to end the day at 9,093.72 points. The benchmark index had crashed over ten per cent yesterday.

According to analysts, the overall situation seem to be easing a bit, which could have made investors a bit optimistic.

With the market falling sharply in the last three days, many of the stocks are trading at really low levels. This might have prompted investors to buy stocks at cheap prices, they noted.

The world's third largest economy has been battered by a devastating earthquake and tsunami last Friday. With many nuclear plants damaged in the calamity, there are also reports that radiation levels have gone up at the Fukushima site.

Japanese central bank has injected a whopping 26.5 trillion yen into the economy, including 15 trillion yen  on Monday.

"The damage of the earthquake has been geographically widespread... for time being, production is likely to decline and there is also concern that sentiment of firms and households might deteriorate," the apex bank had said.