Where is the money going to go?
The ¥10 trillion increase in the asset-purchase program will be split equally towards additional purchases of treasury discount bills and Japanese government bonds, the Bank of Japan said.So how's the currency market reacting? - The chart below says it all (UPDATE: See updated chart). However, I'm still somewhat skeptical that this would do much long term as the fundamental structural issues in Japan still remains unresolved...
Lets also take a look at US stock futures...
|Index Future||Future Date||Last||Net Change||Open||High||Low||Time|
Nice...potential for a nice up day tomorrow.
UPDATE: While there was a quick yen boost, the updated chart below shows exactly what I mean. Another classic case now of Japan trying to influence the market but too little too late. As of Thurs, the yen exchange rate is back down below where it was before the announcement. Disappointing for the Bank of Japan.