Tokyo's Nikkei 225 index edged higher Thursday as investors bet on fresh stimulus measures to negate the fallout from Brexit, but gains were pared by an afternoon yen rally. Equities around the world took a pounding in the wake of Britain's shock vote last week to leave the European Union, as panicked investors ran for the exit door.
But this week has seen a recovery - including London's FTSE wiping out all its Friday losses - despite no questions yet being answered as Britain tries to reach a divorce agreement with EU leaders. Speculation that authorities around the globe will unveil fresh stimulus to offset any negative impact from the out vote have provided support. "The initial shock over the UK voting out of the EU is easing across the world," Mitsushige Akino, a Tokyo-based executive officer at Ichiyoshi Asset Management, told Bloomberg News.
"There's hope for policy measures globally, not just in Japan, so that's supporting markets." After a surge in Europe and New York, Japanese shares soared in the morning but was pegged back through the day as the yen edged higher, hitting exporters. The dollar fell to 102.61 yen from 102.80 yen in New York. The index closed 0.06 percent, or 9.09 points, higher at 15,575.92 by the close but the broader Topix index of all first-section shares lost 0.15 percent, or 1.87 points, to end at 1,245.82.
Over the quarter, the two indexes lost 7.1 percent and 7.5 percent, respectively, capping their worst six-month decline since the global financial crisis, according to Bloomberg data. Earlier, data showed Japan's factory output dived in May for the first time in three months, dealing a blow to hopes for an improvement in second-quarter economic growth figures but adding to speculation over fresh stimulus.
Investors are keeping tabs on inflation and household spending data Friday, as well as the Bank of Japan's closely watched Tankan business confidence survey. Sony rose 0.87 percent to 2,988 yen while automaker Toyota fell 1.30 percent at 5,052 yen. SoftBank was down 0.32 percent at 5,789 yen on a Bloomberg report that US regulators are investigating the mobile carrier over misconduct allegations lodged by a shareholder group against former president Nikesh Arora.
Arora quit last week, apparently over SoftBank boss Masayoshi Son's decision to stay at the helm of the company. But the announcement came just a day after an independent group of board members had cleared Arora over potential conflicts of interest tied to his role as an adviser to a private equity firm. All Nippon Airways' parent company, ANA Holdings, slipped 0.91 percent to 291.2. Earlier Thursday it announced plans to order three planes from Canada's Bombardier for about 11.5 billion yen.