TOKYO: Tokyo shares trimmed earlier gains in afternoon trade after the Bank of Japan dashed hopes the central bank would usher in further easing measures.
The Nikkei 225 index at the Tokyo Stock Exchange was 0.43 percent higher, or 41.03 points, at 9,587.29 in early afternoon and following the central bank's two-day policy meeting that left interest rates unchanged.
The index had been up 0.77 percent by the break, when the announcement was made.
The Topix index of all first-section shares was 0.51 percent higher, or 4.18 points, at 817.87, also off its noon level.
The BoJ left its key interest rate unchanged at between zero and 0.1 percent, repeating its view that the world's third-largest economy was showing signs of picking up.
It said the vote to keep rates on hold was unanimous.
Despite hopes for further easing, markets had not expected the bank to make a significant move after its meeting Tuesday, although it was exploring the possibility of further easing later this month, the influential Nikkei business daily said in its Tuesday morning edition.
The Tokyo benchmark index's morning rally came on bargain hunting following a 1.47 percent slide on Monday caused by weaker-than-expected US employment data.
The Dow Jones Industrial Average lost 1.0 percent to close at 12,929.59 as Wall Street got its first chance to react to the jobs data, released when the US markets were closed for the Easter holiday on Friday.
The dollar was at 81.54 yen in Tokyo afternoon trade, up slightly from 81.49 yen in New York late Monday. The euro bought $1.3129 and 107.05 yen, up from $1.3106 and 106.80 yen.