TOKYO: Japan’s Nikkei share average ended Friday with gains following a rollercoaster session as traders reacted to shifts in tone over five hours of parliamentary testimony from Bank of Japan Governor Kazuo Ueda.
The Nikkei finished up 0.4% at 38,364.27 after starting the day higher and then slumping into the lunch break, only to rally on the restart.
The broader Topix gained 0.5%.
“In the morning, Ueda was quite hawkish,” signalling a readiness to raise interest rates again if inflation continues to develop as expected, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
“But in the afternoon, he was a little more dovish and considerate of markets,” he added, pointing to Ueda’s comment that there’s no difference in thinking with Deputy Governor Shinichi Uchida, who said earlier this month that the central bank wouldn’t tighten policy when markets are volatile.
The yen also swung on Ueda’s comments, last trading about 0.5% stronger at 145.65 per dollar, clawing back most of Thursday’s declines.
Traders now need to be wary of Federal Reserve Chair Jerome Powell’s keynote speech at the US central bank’s annual Jackson Hole symposium later in the day.
Of the Nikkei’s 225 components, 175 stocks gained versus 50 that fell.
Source: Brecorder
