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Tokyo: Nikkei soars to near 1-month high; real estate stocks rise further
[TOKYO] Tokyo shares on Monday soared to near one-month highs in heavy volume as the Bank of Japan's surprise decision to adopt negative interest rates spurred further buying, lifting real estate stocks.
Real estate stocks, beneficiaries of lower interest rates, extended gains. Mitsui Fudosan Co surged 7.5 per cent and Sumitomo Realty & Development soared 6.0 per cent.
But bank stocks lost ground again as negative interest rates will eat into their interest revenues. Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Japan Post Bank stumbled between 5.5 per cent and 8.0 per cent.
The Nikkei ended 2.0 per cent higher at 17,865.23, its highest close since Jan 6.
The broader Topix added 2.1 per cent to 1,462.67, with 3.5 billion shares changing hands, versus an average daily volume of 2.2 billion. The JPX-Nikkei Index 400 rose 2.3 per cent to 13,219.49.