Japan shares soar, yen skids after BOJ stuns with new easing steps

Japanese stocks soared 4.8 percent to their highest close since November 2007 and the yen skidded to near seven-year lows against the dollar on Friday, after the Bank of Japan surprised markets with fresh easing steps it called a pre-emptive move to stoke inflation. The Nikkei stock average marked its biggest one-day gain since June 2013 after Japan's central bank said it would purchase more shares of exchange-traded funds and real estate investment trusts, extend the duration of its portfolio of Japanese government bonds, and increase the pace at which it expands base money to "pre-empt manifestation" of risks. The dollar was buying 111.06, up about 1.7 percent on the day after rising as high as 111.18 yen, its highest since January 2008. "It was a total surprise that the BOJ eased further at this time given that BOJ executives have not voiced such pessimistic views lately.

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