Tokyo: Shares rise as BOJ keeps ultra-loose policy
JAPANESE shares rose on Thursday (Apr 28) as the Bank of Japan (BOJ) recommitted to its ultra-loose monetary policy, with investors relieved to see no negative surprises for the stock market.
The BOJ maintained its massive stimulus programme and pledged to continue buying unlimited amounts of 10-year government bonds to defend the implicit 0.25 per cent yield cap, signalling its resolve to focus on supporting a fragile economy.
“The outcome was in line with our expectations but there had been some uncertainties that the BOJ might change its policy. Those worries have been removed, which boosted the appetite for stocks,” said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
The Nikkei share average rose 1.75 per cent to close at 26,847.90 in its biggest daily rise since Apr 13, after entering negative territory earlier in the session. The broader Topix jumped 2.09 per cent, the most since Mar 23, to 1,899.62.
Overnight, the Nasdaq Composite eased 0.01 per cent, after posting its lowest close since December 2020 in the previous session, while the Dow Jones Industrial Average and the S&P 500 ended higher.
Among individual stocks, Toyota Motor rose 3.23 per cent and was the biggest boost for the Topix, as the yen dropped to a 20-year low and breached the 130-to-the-dollar level.
Chip-testing equipment maker Advantest jumped 4.29 per cent and was the biggest boost for the Nikkei, followed by Toyota affiliate parts maker Denso, which surged 9.72 per cent.
Uniqlo clothing shop operator Fast Retailing was the biggest drag on the Nikkei, losing 1.34 per cent, followed by Medical services platform M3, which fell 2.23 per cent.
Kikkoman cut its losses to end 1.08 per cent lower. The stocks marked its second day of decline as the soy sauce maker failed to provide outlook due to rising costs. REUTERS
Share with us your feedback on BT's products and services
