European Markets Gain On Japan Stimulus Announcement

European markets rose Wednesday as investor confidence was lifted after the Bank of Japan announced stimulus measures to revive economic growth momentum.

The French CAC 40 index was up 0.61 percent or 21.34 points to 3534.03. Shares of Peugeot SA rose 2.06 percent and those of Vivendi SA advanced 1.61 percent.

London’s FTSE 100 index rose 0.29 percent or 17.01 points to 5885.17. Shares of Smiths Group Plc climbed 2.69 percent and those of Kazakhmys Plc gained 2.22 percent.

The German DAX 30 index advanced 0.61 percent or 44.55 points to 7392.24. Shares of Deutsche Bank AG rose 1.50 percent and shares of Volkswagen AG climbed 1.35 percent.

Spain's IBEX 35 was up 0.80 percent or 64.10 points to 8122.40. Shares of Inditex SA rose 3.87 percent and those of Acciona SA advanced 2.82 percent.

Market sentiment turned positive as the BoJ announced Wednesday stimulus measures in an attempt to rejuvenate the country’s economy weakened by the soft global demand and worrying domestic activities.

The BoJ said that it was increasing the size of its asset purchases by 10 trillion yen ($127 billion) to 80 trillion yen. The central bank decided that the increased amount would be used for purchasing the treasury discount bills and Japanese government bonds.

Meanwhile, the central bank left the policy interest rate in the current range of zero to 0.1 percent. “The bank expects that, together with the cumulative effects of earlier policy measures, today’s decision to enhance monetary easing will ensure the return of Japan’s economy to a sustainable growth path and price stability,” the BoJ said in a statement announcing its decisions.

Uncertainty over the global economy is weighing heavily on Japan. Last month, the Finance Ministry data showed that Japan recorded 517.4 billion yen ($6.5 billion) trade deficit in July, down from 60.3 billion yen surplus in June. Exports dropped 8.1 percent to 5.31 trillion yen from a year earlier.