We use a Global VAR model to study spillovers from the Bank of Japan's quantitative andqualitative easing (QQE) on emerging Asia.1 Our main result is that, despite an appreciationof their currencies vis-à-vis the yen, the impact on emerging Asia's GDP tended to bepositive and significant. Our results suggest that the positive effect of QQE on expectations,by improving confidence, more than offset any negative exchange rate spillover due toexpenditure switching from domestic demand to Japanese goods. They also suggest thatspillovers from QQE might have worked mainly through the impact of expectations andimproved confidence, captured by increases in equity prices, rather than through balancesheet adjustments which might have been captured by movements in the monetary base.