2023-12-20 09:03:18
Japan Stocks – Tokyo Stock Exchange
Japan’s Nikkei index closed at its highest level in more than 5 months at the end of Wednesday’s session as caution faded regarding the Bank of Japan’s policy stance following it did not provide any hints regarding when it would abandon the negative interest rate policy.
The Nikkei index rose 1.37 percent to close at 33,675.94 points, the highest closing level since July 3. The broader Topix index rose 0.67 percent to 2,349.38 points
“There was no indication from Bank of Japan Governor (Kazuo) Ueda regarding the timing of exiting the bank’s negative interest rate policy,” said Shotaro Yasuda, a market analyst at the Tokai Tokyo Research Institute.
He added, “Speculation regarding a shift in the Bank of Japan’s policy was affecting the Japanese market, which is why local stocks underperformed their American counterparts. Now this caution has diminished.”
The Bank of Japan maintained its ultra-loose monetary policy on Tuesday in a move that was widely expected.
Shuji Hosui, chief strategist at Daiwa Securities, said the Nikkei rose because investors who bet on stocks falling before the Bank of Japan’s decision bought stocks once more.
Fast Retailing, which owns the Uniqlo clothing brand, rose 3.92 percent, providing the biggest support to the Nikkei index.
Silicon chip maker Shin-Etsu Chemical jumped 4.08 percent, and air conditioner maker Daikin Industries rose 3.1 percent.
The shipping sector rose 3.16 percent, becoming the biggest gainer among 33 sector sub-indices on the Tokyo Stock Exchange.
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