TOKYO: Japanese shares jumped more than one percent on Tuesday afternoon after Japan's central bank announced a zero-interest rate policy.
The headline Nikkei index, which had been hovering below 9,400 points in early afternoon trade, jumped to a high of 9,538.35 points shortly after the surprise announcement.
As of 2:05 pm (0505 GMT), the benchmark index was trading at 9,510.43 points, up 129.37 points or 1.38 percent from the previous day's close.
"It was a quite positive surprise," said Masumi Yamamoto, equity market analyst at Daiwa Securities Capital Market.
"This signalled the Bank of Japan bowed to pressure from the government and took all the possible measures, which may actually create a new concern that the BoJ has no card to play in its hands," Yamamoto said.
The central bank also announced further monetary easing measures in a bid to combat the harmful strength of the yen and beat persistent deflation.
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