BoJ's move, Fed's rate decision boost Asian markets

The BoJ said it would increase to 20 trillion yen (220 billion dollars) a short-term loan facility that other banks could access to free up money as it tries to kickstart a faltering recovery in the world's second-biggest economy.

It also said after a two-day meeting that it would maintain interest rates at near-zero percent — where they have been since December 2008 — to fight deflation, which is weighing on the nation's rebound.

Tokyo closed up 1.17 percent, or 125.27 points, at 10,846.98, while Sydney also rose 1.17 percent, or 56 points, to 4,853.2.

“The central bank's decision is what has been expected... this is giving investors a relief,” Shinichiro Matsushita, market analyst at Daiwa Securities, told Dow Jones Newswires.

Hong Kong closed 1.72 percent, or 361.56 points, higher at 21,384.49 and Shanghai added 1.93 percent, or 57.64 points, to end at 3,050.48.

In announcing its decision the Bank of Japan said: “Japan's economy is picking up mainly due to various policy measures taken at home and abroad.”

However, it said there was “not yet sufficient momentum to support a self-sustaining recovery in domestic private demand.”

Car stocks benefited from the Nikkei's rise, with Honda up 0.15 percent to 3,250 yen despite recalling an estimated 412,000 vehicles in the United States because of problems with “soft” brakes.

Toyota added 0.84 percent to 3,580 yen after soaring 1.28 percent Tuesday as worries slowly receded about recent global recalls.

Wall Street was boosted by the announcement, rising 0.41 percent on Tuesday.

In Europe concerns began to recede for fiscally embattled Greece after Standard & Poor's lifted its threat of an imminent downgrade of the country's debt rating, dealers said.

The international agency maintained Greece's credit ratings, saying Athens' austerity budget was “appropriate” for achieving its 2010 fiscal target.

In Brussels, European finance ministers backed a plan to make emergency loans available to Greece, if needed, to shield the country from bankruptcy, describing the rescue plan as a necessary evil.

In other markets:

— Singapore closed 0.79 percent higher at 2,919.30.

— Seoul added 2.11 percent, or 34.85 points, to end at 1,682.86.

— Jakarta gained 3.25 percent, or 86.65 points, to 2,756.26.

— Kuala Lumpur closed up 0.24 percent, or 3.09 points, to 1,301.95.

— Manila was flat, edging up 2.92 points to 3,088.05.

— Wellington closed 0.21 percent, or 6.84 points, lower at 3,200.96.

— Bangkok rose 1.77 percent, or 13.34 points, to close at 765.54, despite ongoing protests in Bangkok.

— Mumbai rose 0.61 percent, 106.90 points to 17,490.08.

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