Tuesday, 15 September 2015 12:39
TOKYO: Tokyo shares gained 0.34 percent Tuesday, closing higher for the first time in four days after the Bank of Japan refrained from unleashing fresh monetary stimulus.
The Nikkei 225 index at the Tokyo Stock Exchange rose 60.78 points to 18,026.48, although telecom stocks slumped for a second day after the government called on them to cut rates.
The broader Topix index of all-first section shares edged down 0.17 points to 1,462.24.
Japan’s central bank held fire on expanding its unprecedented monetary easing programme on Tuesday, and warned slowing growth in key emerging markets would also drag on exports and production in the world’s number three economy.
While investors had largely expected the BoJ would not expand its easing programme ahead of a long-awaited US rate decision this week, many predicted it would be forced to unveil further measures soon.
“If the downside risks worsen the BOJ will need to take action,” Yasuhiro Takahashi, an economist at Nomura Holdings, told Bloomberg News.
“The BOJ had been optimistic about the outlook for Japan’s economy but in today’s statement it lowered its view on exports and production,” Takahashi said.
Investors have been kept on edge by worries over the growth of China’s economy — the world’s second-largest and a key trade partner for Japan — ahead of the US central bank interest rate decision on September 17.
Although the Fed has signalled it plans to lift interest rates in 2015, some analysts say turbulence in equity markets could prompt the US central bank to push back its time frame.
In Japanese share trading, telecom stocks suffered fresh losses after Japanese policymakers on Monday urged cuts to mobile phone bills in order to reduce household expenditure.
NTT Docomo fell 3.72 percent to 2,120.5 yen, KDDI slipped 5.68 percent to 2,603.5 yen, and Softbank was down 2.20 percent to 6,018.
Scandal-hit Toshiba tumbled 1.84 percent to 309 yen after the company reported a first-quarter loss of $ 102 million Monday, with sales falling to a two-and-half year low.
Toyota gained 2.19 percent to 7,161 yen, market heavyweight Fast Retailing, operator of the Uniqlo clothing chain, rose 1.69 percent to 47,150 yen, while videogame giant Nintendo, which appointed a new president yesterday, lost 1.28 percent to 22,620 yen.
The dollar slipped to 119.62 yen in Tokyo trade from 120.18 yen Monday in New York after the BoJ refrained from unleashing more monetary stimulus to boost growth in the world’s number three economy.
The euro was also weaker against the Japanese unit at 135.35 yen against 136.01 yen, while it dropped to $ 1.1312 from $ 1.1317.
