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Nikkei ends at 7-year high on BOJ's additional monetary easing(Japan Economic Newswire Via Acquire Media NewsEdge) Tokyo stocks soared Friday, with the Nikkei stock index ending at its highest level in around seven years, after the Bank of Japan decided to expand its massive asset purchase program. The 225-issue Nikkei Stock Average ended up 755.56 points, or 4.83 percent, from Thursday at 16,413.76, its highest finish since Nov. 2, 2007. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished up 54.74 points, or 4.28 percent, at 1,333.64. The Tokyo market started on a firm note on the heels of an overnight rise in U.S. stocks stemming from the country's strong gross domestic product data. Also supporting the market was a news report that Japan's Government Pension Investment Fund could announce its new investment portfolio as soon as Friday, said Nobuhiko Kuramochi, chief strategist at Mizuho Securities Co. The Nikkei business daily reported that the GPIF, which manages 127 trillion yen, will unveil new allocation targets for its portfolio that would raise the target for domestic stocks to 25 percent from 12 percent and lower that for domestic bonds to 35 percent from around 60 percent. The market surged in the afternoon with the Nikkei index briefly rising over 800 points, or 5 percent, after the BOJ decided to boost its massive asset purchase program during its policy meeting. The central bank will purchase Japanese government bonds from financial institutions so that the amount outstanding will increase at an annual pace of about 80 trillion yen, up about 30 trillion yen. It will also purchase more investment trusts from banks and other institutions. "Further monetary easing, which was seen unlikely for today, is the main factor behind the surge in the afternoon, providing strength to the market," said Hiroichi Nishi, assistant general manager of equity research at SMBC Nikko Securities Inc. Advancing issues trounced declining ones by 1,694 to 120 on the First Section, while 19 closed unchanged. All sectors but air transport finished higher, with real estate, consumer finance and brokerage leading the gainers. Exporters such as electronics and automakers were in demand, thanks to the U.S. dollar's advance to the lower 111 yen zone, with Nissan Motor expanding 47.80 yen, or 5.0 percent, 997.90 to yen and Fuji Heavy Industries jumping 246 yen, or 7.3 percent, to 3,599 yen. Toshiba also gained 20.70 yen, or 4.5 percent, to 483.60 yen in response to its earnings report that said the company's group net profit in the April-September fiscal first half soared 43.3 percent year-on-year to 30.85 billion yen. Canon added 149 yen, or 4.6 percent, to 3,389 yen a day after announcing the printer maker will buy back up to 1.5 percent of its outstanding shares. Trading volume on the main section increased to 4,012.78 million shares from 2,795.85 million shares on Thursday. (c) 2014 Kyodo News |