TOKYO: Japan’s Nikkei index ended higher on Thursday, for the first time in more than a week, as investors bought back shares that had been beaten down by the Bank of Japan’s (BOJ) surprise policy tweak earlier this week.
Automaker shares rebounded strongly after the yen showed signs of stabilizing, and the real estate sector rallied as long-term bond yields also calmed down after steep climbs.
Toshiba ended 4.25% higher and was up as much as 7.61% at one point after local media reported that the company’s preferred bidder, Japan Industrial Partners (JIP), is set to seal a $10.6 billion loan this week.
The Nikkei share average ended the day up 0.46% at 26,507.87, after dipping as low as 26,269.80 in the previous session for the first time since Oct. 13.
The last time the benchmark had a winning day was Dec. 14, as it was buffetted not just by the BOJ’s hawkish twist, but by US recession fears.
“The BOJ decision was a massive surprise, but the markets seem be digesting it bit by bit,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
“For the rest of the year, the Nikkei will probably fluctuate around the current level of about 26,500, but in the new year, the focus should be back on US inflation and the economic outlook.”
Tokyo shares close lower for fifth straight day
The broader Topix gained 0.78% on Thursday to 1,908.17. Real estate was the best-performing Topix sector, gaining 2.5%. Mitsui Fudosan jumped 4.3% and Sumitomo Realty rallied 3.6%.
The transport equipment sector also stood out, rising 1.6% as the yen stabilized after a spike to a 4-1/2-month peak on Tuesday.
A stronger yen reduces the value of overseas revenue.
Toyota climbed 1.83% and Nissan rose 2.15%.
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