TOKYO: Japanese stocks closed higher Thursday after the Bank of Japan (BOJ) retained its easy monetary policy stance, a move largely expected by investors, with sentiment boosted further by an upbeat finish on Wall Street overnight.
The Nikkei share average ended up 0.44% at 27,803, topping the six-week high reached the previous day. The broader Topix added 0.21% to 1,950.59.
The gains came as the BOJ maintained ultra-low interest rates, compared with a slew of global central banks tightening policies, but it projected inflation this year to be at 2.3%, higher than its 2% target.
“The stock market appears to believe that this level won’t have a big influence on government policy,” said a market participant at a domestic asset management firm.
Of the 225 Nikkei constituents, 137 gained, 78 fell, and 10 were flat.
Pharmaceuticals company Shionogi & Co Ltd was the biggest decliner, dropping 6.84% on a delay in approval for a drug to treat COVID-19.
Steel companies also fell after the United States voted to extend duties on steel from Japan, China, India, South Korea, and the UK for five more years, while revoking the same duties for Brazil.
Kobe Steel Ltd lost 3.31%, while Nippon Steel Corp fell 3.02%. Pacific Metals Co Ltd, which primarily manufactures and sells nickel, was up 1.49%.
Technology companies were among the best performers. Nikon Corp was the top gainer, rising 3%.
TDK Corp gained 2.3%, Fujitsu Ltd added 2.12%, and NTT Data Corp was up 2.11%.
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