TOKYO: Japan’s Nikkei ended nearly 1 percent higher on Monday, rebounding after a volatile last session, as concerns eased over the impact of the Bank of Japan’s decision to sell its holdings of riskier assets.
The Nikkei share average climbed 0.99 percent to 45,493.66, while the broader Topix rose 0.49 percent to 3,163.17.
The BOJ said on Friday that it would sell its holdings of exchange-traded funds (ETFs) at an annual pace of around 330 billion yen (USD2.23 billion), another move to phase out its massive monetary stimulus.
The Nikkei reversed its gains after the BOJ’s announcement on Friday to fall as much as 2 percent. It ended the session 0.57 percent lower. “Investors overreacted to the BOJ’s announcement. And today, the market is rebounding,” said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory.
The pace of BOJ sale of ETFs is slow, and the market just wondered why it turned so bearish on Friday, he said.
Japanese equities were also underpinned by Wall Street’s strength and optimism about new domestic policies, said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Asset Management.