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Tokyo’s Nikkei closes lower on jitters over BoJ policy
TOKYO, July 26, 2018 (BSS/AFP) – Tokyo’s key Nikkei index closed lower
Thursday on caution over a Bank of Japan meeting next week, while the broader
market was up as concerns about US-EU trade frictions receded.
The Nikkei 225 index ended down 0.12 percent, or 27.38 points, at
22,586.87, while the broader Topix index rose 0.70 percent, or 12.30 points,
to 1,765.78.
Tokyo stocks opened higher but the Nikkei soon fell into negative
territory amid speculation that the Bank of Japan could review its buying of
exchange-traded funds to invest in companies comprising the index.
“The Nikkei is slack due to caution over the Bank of Japan meeting but
overall sentiment is solid,” said Makoto Sengoku, market analyst at Tokai
Tokyo Research Institute.
Media reports have said the central bank would discuss tweaking its loose
monetary policy at the meeting.
Caution sparked selling for high-priced shares, dragging the Nikkei down,
but the US-EU announcement lifted the overall market.
Wall Street staged a late rally after US President Donald Trump and
European Commission chief Jean-Claude Juncker Wednesday agreed a plan to
defuse a festering trade dispute.
“The announcement indicates their trade friction will not escalate and
they would avert a trade war,” Sengoku told AFP.
The improved sentiment helped push up Japanese carmakers’ stocks, Sengoku
added.
Toyota climbed 0.83 percent to 7,384 yen, and Nissan rose 0.38 percent to
1,039 yen before it releases April-June results.
The dollar dropped to 110.62 yen from 110.98 yen in New York Wednesday
afternoon.
BSS/AFP/HR/1340