Stocks rose, the yen retreated and long-dated government bond yields rallied around the world early Wednesday after Japan's central bank affirmed its commitment to aggressive easing as it introduced a new monetary policy framework.

The Stoxx Europe 600 was up 1% in the early minutes of trading, led by the banking sector, while futures pointed to a 0.6% opening gain for the S&P 500.

At the conclusion of its monetary policy review on Wednesday, the Bank of Japan introduced an interest-rate target for 10-year government bonds, committing to keep them around zero, and said it would continue quantitative easing until inflation "exceeds" 2%. It left its main interest rates unchanged.

Banks and insurance companies in Japan rallied amid relief the bank didn't cut interest rates lower and on hopes that a steeper yield curve would boost bank profits. The Nikkei Stock Average jumped 1.9%, while the TOPIX banks sector jumped around 7%.

Bank stocks in Europe climbed 2.5% in early trading.

The dollar rose 0.6% against the yen to ¥ 102.2410, while 10-year Japanese government bond yields climbed into positive territory for the first time since March before falling back to trade at minus 0.025%.

Moves in Japanese bonds rippled overseas, as the yield on the 10-year U.S. Treasury note rose to 1.705% from 1.687% Tuesday, while German 10-year yields returned to positive territory at 0.012%. Yields move inversely to prices.

"We think the commitment to overshooting the inflation target suggests that monetary easing will continue for longer than previously expected," analysts at Standard Chartered wrote in a note.

Still, some investors were skeptical the market moves would last. "When the dust settles, we think this will be seen as a disappointment," said Adam Cole, currency strategist at RBC Capital Markets, noting the BOJ's instruments ultimately remain little changed.

Investors were also focused on the Federal Reserve's September monetary policy meeting, concluding later Wednesday. While few expect the bank to raise rates, any hints at a rise in December could call into question a steady rise in risky assets such as stocks over the summer.

Takashi Nakamichi contributed to this article.

Write to Riva Gold at riva.gold@wsj.com

(END) Dow Jones Newswires

September 21, 2016 04:15 ET (08:15 GMT)