>The Bank of Japan's entry into NIRP (negative interest rate policy) overnight sent the Nikkei soaring and the yen plunging - that's manna to those Japan ETFs which hedge against the yen's decline.
What long-term effects will this have on the Japanese and global economy/stock market?
negative interest rates encourage banks to not park money and instead lend it to people. They want to encourage inflation which they need to spend money, which can happen by people getting loans, which contributes to an inflation cycle.
There is a negative 0.75% rate in place in Switzerland already so it isn't anything new and the Japan negative interest rate is only negative .01%