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Hong Kong - Asian markets rallied on Friday and the dollar pushed past ¥111 after Japan's central bank said it would expand its vast monetary easing scheme and the United States released forecast-busting economic growth data.
Japanese stocks clocked up gains of almost 5% to sit at a seven-year high after the Bank of Japan announced its surprise decision in a bid to drag the economy back from the brink of recession.
The Nikkei jumped 4.83%, adding 755.56 points to 16 413.76 - its highest since November 2007 - with buying further boosted by a report that country's vast national pension fund would double its domestic equities holdings. The index is now in positive territory for the year to date.
Sydney closed up 0.92% at 5 526.6 and Seoul tacked on 0.28% to end at 1 964.43.
Hong Kong climbed 1.25% to 23 998.06 while Shanghai jumped 1.22% to 2 420.18 - its highest since February last year.
The BoJ said Friday it would add up to ¥20trn to its current asset-buying scheme, bringing it to ¥80trn annually.
The decision sent the yen sinking to ¥111.22 against the dollar, levels not seen since January 2008. The euro rose to ¥139.76 from ¥137.79 in morning trade and ¥137.75 in New York on Thursday.
The Japanese unit was already heading south after data showed the US economy grew a better-than-expected 3.5% in the three months to the end of September.
Friday's move is the first since the BoJ launched its huge bond-buying scheme in April last year as part of Tokyo's wider plan to conquer years of deflation and jumpstart the economy.
It comes as the world's number three economy struggles to pick up following an April sales tax hike that torpedoed a nascent recovery.
The economy contracted 7.1% on an annualised basis in the second of the year and there are fears of another downturn in July-September, which would technically put the country in recession.
Official figures showed Friday that September inflation slowed further, household spending plunged and unemployment rose, raising further questions about the government's recovery plan, which saw a painful sales tax hike in April.
Also in Japan a report in the Nikkei business daily said the country's public pension fund - the world's biggest - will double the amount of stocks it holds in its investment portfolio as it seeks out higher returns to cope with an ageing population.
Wall Street ended on a high after the US growth data, with the Dow surging 1.30%, while the S&P 500 added 0.62% and the Nasdaq gained 0.37%.
On oil markets US benchmark West Texas Intermediate for December delivery fell 56 cents to $80.56 while Brent crude for December was down 74c at $85.50 in afternoon trade.
The price of gold, considered a safe bet in times of uncertainty, fell to $1 173.87 an ounce from $1 205.80 late on Thursday.
In other markets:
- Singapore closed up 39.94 points to 3 274.25.
Oil rig maker Keppel rose 0.86% to Sg$9.44, while United Overseas Bank gained 2.40% to Sg$23.00.
- Taipei rose 0.98% to 8 974.76.
Taiwan Semiconductor Manufacturing added 1.56% to Tw$103.5, while Acer was 0.97% higher at Tw$20.85.
- Wellington rose 0.33% to 5 387.83.
Trade Me ended up 1.03% at NZ$3.92 and Contact Energy gained 0.32% to close at NZ$6.20.
- Manila added 0.62% to 7 215.73.
Top-traded Philippine Long Distance Telephone gained 0.26% to 3 124 pesos, while Banco de Oro rose 1.98% to 98 pesos.
- Mumbai surged 1.90% to 27 865.83.
Housing Development Finance rose 4.13% to 1 105.95 rupees, while Bharati Airtel fell 2.26% to 398.30 rupees.
- Bangkok gained 1.20% to 1 584.16.
Telecoms company True Corporation soared 4.42% to 11.80 baht, while supermarket operator Big C Supercenter climbed 4.02% to 233.00 baht.
- Kualu Lumpur rose 0.67% to close at 1 855.15.
Tenaga Nasional rose 1.98% to 13.36 ringgit, while RHB Capital went up 0.34% to close at 8.80.
- Jakarta closed 0.61% higher at 5 089.55.
Palm oil producer Astra Agro Lestari rose 2.17% to 23 500 rupiah, while Indah Kiat Pulp & Paper lost 0.43% to 1 150 rupiah.
