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Tokyo’s Nikkei closes higher after BoJ decision
TOKYO, July 31, 2018 (BSS/AFP) – Tokyo’s key Nikkei index closed
marginally higher on Tuesday, as some investors resumed buying after the Bank
of Japan issued a closely watched policy decision in line with market
expectations.
The Nikkei 225 index ended up 0.04 percent, or 8.88 points, at 22,553.72,
while the broader Topix index closed down 0.84 percent, or 14.86 points, at
1,753.29.
The Bank of Japan during afternoon trade announced that it had revised down
inflation forecasts while making only minor tweaks to its monetary policy in
a bid to make its massive easing programme sustainable.
There was widespread speculation in the run-up to the central bank’s two-
day meeting that it would adjust its ultra-loose policy, seeking to offset
the effects of negative interest rates and its massive bond and asset buying.
The Nikkei index opened lower with investors taking a wait-and-see approach
ahead of the central bank decision.
But the Nikkei later rebounded “as the policy change was largely within
market expectations” leaving investors relieved, Hiroaki Hiwata, strategist
at Toyo Securities told AFP.
The yen weakened against the dollar after the bank’s announcement, trading
at 111.25 yen against the dollar in late Tokyo hours, against 111.00 yen in
New York.
“Despite the adjustment, the statement indicates the Bank of Japan is still
sticking to the status quo,” said Masakazu Satou, senior analyst at Gaiame
Online.
In Tokyo, Sony closed down 0.63 percent at 5,828 yen, while Panasonic was
up 0.41 percent at 1,438 yen.
Right after the market close Sony said it has revised upward its full-year
profit and sales forecast, now forecasting 500 billion yen ($4.5 billion) in
net profit for the fiscal year to March 2019.
Panasonic is due to release its earnings report late Tuesday.
Honda ended down 0.56 percent at 3,355 yen and after the end of trade
reported net profit of 244.3 billion yen for the first quarter to June,
forecasting a full-year profit of 615 billion yen.
That was an upwards revision of its previous forecast.
The full-year figure is still down 41.9 percent from the previous year due
partly to a higher yen against the dollar.
Electronics giant Sharp meanwhile said its first quarter net profit
declined 32.6 percent to 19.2 billion yen, but it kept its full-year forecast
at 80 billion yen net profit, up 13.9 percent from the previous year.
Sharp shares were trading up 0.34 percent at 2,585 yen before the results
which came after the closing bell.
Airlines fells ahead of their earnings reports, with JAL down 3.19 percent
to 4,123 yen and ANA losing 1.08 percent to 4,100 yen.
After the closing bell, both airlines reported a fall in profits.
BSS/AFP/MR/1430 hrs