Tokyo stocks close higher on BoJ easy monetary policy

TOKYO: Tokyo stocks closed higher on Thursday, supported by prospects for strong corporate profits and expectations that the Bank of Japan will stick to its loose monetary policy path for some time.

The Tokyo bourse got off to a firm start after three major New York indexes ended at all-time highs on solid earnings, lifting spirits as Japan's reporting season begins in earnest next week.

Thursday's rise "shows rising expectations for corporate earnings", Okasan Online Securities chief strategist Yoshihiro Ito said in a commentary.

Investors were also relieved after the BoJ decided to maintain its ultra-loose monetary policy at a time when their counterparts in other major economies from the Americas to Europe consider ending the era of cheap cash.

Tokyo's benchmark Nikkei 225 index rose 0.62 percent, or 123.73 points, to end at 20,144.59, while the Topix index of all first-section issues gained 0.69 percent, or 11.14 points, to 1,633.01.

The BoJ slashed its annual inflation forecast and once again delayed its timetable for hitting a two percent target, spawning speculation that it will stick to its loose policy path for some time.

The yen fell against other major currencies, a plus for Japanese exporters.

"Yen-selling accelerated following the announcement as the delay in (achieving) the inflation target generally means the BoJ would have to continue its easing in sharp contrast to other major central banks moving to tightening," Tomohiro Nishida, a dealer at Sumitomo Mitsui Trust Bank, told AFP.

The dollar climbed to 112.12 yen Thursday afternoon from 111.84 yen in New York on Wednesday.

In stocks trade, construction contractor Obayashi rose 1.49 percent to 1,360 yen and Taisei climbed 1.03 percent to 1,075 yen.

Nissan Motors gained 1.01 percent to 1,140 yen and Sony rose 0.82 percent to 4,534 yen.