Asian markets gain after Japan central bank boosts aid

BEIJING (AP) — Asian stock markets gained Monday after Japan’s central bank promised more asset purchases to shore up financial markets and more governments prepared to revive struggling economies by reopening businesses.

Tokyo’s benchmark surged 2.8% and Shanghai, Hong Kong and Sydney also gained.

Investors are looking ahead to meetings of U.S. and European central bankers this week for additional measures to reverse the deepest global slump since the 1930s. That comes amid mounting evidence the coronavirus pandemic’s economic damage is even worse than expected.

The Bank of Japan said it will buy an additional 15 trillion yen ($140 billion) of commercial paper and bank loans. That is a “significant increase from the timid 2 trillion yen” in purchases announced in March, said Marcel Thieliant of Capital Economics in a report. The bank also raised its ceiling on purchases of government debt.

Elsewhere, the U.S. Federal Reserve is more likely to announce it will wait to see the impact of earlier stimulus before taking more action, Hayaki Narita of Mizuho Bank said in a report. The European Central Bank “will likely keep its options for easing open.”

Also Monday, China’s government reported profits at major industrial companies shrank 34.9% in March over a year earlier. That was an improvement over the 38.3% decline in January and February, but analysts said a full recovery is a long way off.

This week’s other potentially market-moving events include data from the United States, China, Japan, Germany and France on inflation, trade, industrial activity and retail spending.

The Shanghai Composite Index gained 0.7% to 2,827.50 while the Nikkei 225 in Tokyo rose to 19,803.99. The Hang Seng in Hong Kong added 1.8% to 24,270.61.

In Seoul, the Kospi was...