Oil extended gains in Asia today as financial markets cheered Japan’s aggressive monetary easing policy seen as key to reviving the world’s third largest economy, analysts said.

New York’s main contract, light sweet crude for delivery in May, added 29 cents to $93.65 a barrel and Brent North Sea crude for May delivery rose 51 cents to $105.17 in mid—morning trade in Asia.

Both contracts closed higher yesterday.

“Growth in stocks after the bank of Japan’s monetary easing is favouring global growth and providing support to the oil market,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

The Bank of Japan, under its newly appointed governor Harukiko Kuroda, last week announced bold monetary easing steps, including allowing for a sharply weaker yen, in a bid to revive the stagnant economy.

Kuroda said his team would double Japan’s money supply by the end of 2014, jack up asset purchases and hit a two-per cent inflation target in as many years, vowing no let-up in the battle against falling prices which have plagued the economy for decades.

The move sent Japanese stocks higher, and a steep decline in the yen cheered exporters whose competitiveness in the international market depends on a weaker currency.

“Japan’s policies are viewed as stimulus to revive its stagnant economy. If successful, Japan’s policies will be positive for world growth, and hence, should be considered as ’enrich thy neighbour’ and not ‘beggar thy neighbour’ policies,” DBS Bank said in a research note.

“Apart from the economy, ‘enrich thy neighbour’ can also imply more investment flows out of Japan in search of yield in the world,” it said, adding that the money could flow into the Eurozone and Southeast Asia.

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