Japan’s Nikkei ended higher on Thursday, rising for the first time in more than a week, as investors bought back stocks that had fallen on a surprise policy change by the Bank of Japan (BOJ).
The yen steadied on Thursday, helping automaker shares rebound strongly, while real estate stocks also rallied and long-dated bond yields calmed down after earlier sharp gains.
The Nikkei index closed up 0.46% to 26507.8 points. It was as low as 26507 points yesterday, setting an intraday low since October 13.
The last time the Nikkei rose was on Dec. 14, during which time Japanese shares were hit not only by the Bank of Japan’s hawkish stance, but also by fears of a U.S. recession.
Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, said the Bank of Japan’s decision came as a surprise, but the market seems to be digesting it a little bit. For the rest of the year, the Nikkei may fluctuate around the current 26,500 points , but after entering the new year, the focus should return to the US inflation and economic outlook.
The broader Topix rose 0.78% to 1908.17 on Thursday, led by real estate stocks, which rose 2.5%, with Mitsui Fudosan up 4.3% and Sumitomo Fudosan up 3.6%.
Japan’s “Yomiuri Shimbun” quoted unnamed sources as saying that several banks are finalizing the loan terms for the acquisition of Toshiba Corporation, bidding for the acquisition of JIP Group (Japan Industrial Partners), which Toshiba enjoys priority, and is expected to receive 1.4 trillion yen this week. Bank syndicated loans, the news helped Toshiba surge more than 4%, closing at 4535 yen.