TOKYO: Japan’s Nikkei share average ended higher on Tuesday, rebounding from two straight session of heavy losses, as the yen’s relentless rise paused on the eve of a crucial Bank of Japan (BOJ) policy decision.
That took pressure off exporters’ shares, lifting automakers in particular. Chip-related shares and electronic component makers also bounced back.
The Nikkei rose 1.23% to close at 26,138.68, while the broader Topix gained 0.88% to 1,902.89.
The BOJ’s two-day meeting began on Tuesday, following a build-up of speculation that officials could tweak policy settings again, only a month after surprising markets by doubling the allowable range for the 10-year Japanese government bond yield to 50 basis points either side of the 0% policy rate.
The yen surged as high as 127.215 per dollar on Monday, but retreated to last trade around 128.
Japan’s Nikkei falls over 1% as Uniqlo owner, BOJ speculation weigh
“Now the market is kind of pushing back on what it had expected” from the BOJ, said Naka Matsuzawa, chief Japan macro strategist, Nomura.
“There’s no reason for the BOJ to speed up the rate hike process and sacrifice the economy and stock prices.”
Toyota rallied 2.5% and Nissan jumped 2.69%.
Transport equipment makers was the best performer among the Tokyo Stock Exchange’s 33 industry groups, gaining 2.47%. Electronic machinery rose 1.88%.
Chip-making equipment giant Tokyo Electron advanced 2.0%. Sony added 2.44%. Industrial robot maker Yaskawa Electric jumped 4.14% to be the top percentage gainer on the Nikkei.
Uniqlo store operator Fast Retailing rose the most by index points, adding 68 points, with a 2.78% rebound after plunging to successive six-month lows in the past two sessions.
Bank shares, which had been buoyed to a five-year high by BOJ bets on Friday, continued their retreat. The TSE’s banking subindex eased another 0.65% on Tuesday, following the previous session’s 2.94% plunge.
Comments
Comments are closed.