2023-07-28 07:34:27
The Tokyo Stock Exchange ended slightly lower on Friday following a very volatile session, marked by the announcement of the Bank of Japan (BoJ) of its intention to be more flexible on its control of bond yields.
After falling more than 2.5% shortly following the BoJ’s announcement, the flagship Nikkei index closed down 0.4% at 32,759.23 points, posting an increase of 1.4%. The broader Topix index dropped 0.2% to 2,290.61 points.
The Japanese Central Bank announced on Friday that it wanted to return “plus flexible» its control of the Japanese ten-year bond yield curve, while inflation in the country is still above its target and makes it difficult to maintain its ultra-accommodative monetary policy.
Faced with the binary choice of whether or not to continue its policy of monetary easing, “the BoJ has chosen both”, commented Nicholas Smith of CLSA in Tokyo, quoted by the Bloomberg agency. At the risk, according to him, of losing all credibility.
In Hong Kong, the Hang Seng index gained 1.3% around 0710 GMT, supported by its technology stocks amid hopes of new stimulus measures from Beijing.
Japanese banks boosted by the BoJ
The major Japanese banking stocks were boosted by the loosening of control of Japanese ten-year bond yields by the BoJ, which bodes well for their profits: Mitsubishi UFJ Financial Group jumped 5.28% to 1,136 yen, Sumitomo Mitsui Financial Group by 4.29% to 6,629 yen and Mizuho by 4.8% to 2,379 yen.
After swinging violently in opposite directions in the wake of the BoJ’s decisions, the yen was only slightly up once morest the greenback, at 139.23 yen to the dollar around 0700 GMT once morest 139.48 dollars on Thursday. at 9:00 p.m. GMT. The euro also retreated once morest the Japanese currency at 152.76 yen once morest 153.13 yen the day before, while the euro/dollar rate was almost unchanged, at one euro for 1.0977 dollar once morest 1.0979 dollar on Thursday.
On the oil market, the barrel of American WTI lost 0.19% to 79.94 dollars around 07:00 GMT and the barrel of Brent from the North Sea 0.23% to 84.05 dollars.
1690539021
#Tokyo #Stock #Exchange #limited #losses #announcement #Bank #Japan
