Japan's Nikkei hits 4-week peak amid calm bond market, earnings boost
Japan's Nikkei share average rallied to a four-week high on Monday as a relatively calm reaction in the domestic bond market following the Bank of Japan's surprise policy tweak and growing optimism for a soft landing for the U.S. economy boosted investor sentiment. Earnings reports also produced some stand out winners and losers, with Toyota Group logistics company Toyota Tsusho surging nearly 10% and helping lift the auto sector.
At the other end, robot maker Fanuc tumbled more than 6%. Sumitomo Pharma plunged 7% after disappointing trial results for its schizophrenia treatment. The Nikkei gained 1.54% to 33,262.74 as of the midday recess, and was as much as 2% higher at one point, reaching 33,402.08 for the first time since July 4.
Of its 225 components, 194 rose versus 29 that fell, with two flat. The broader Topix gained 1.37% to 2,321.89. Among the Tokyo Stock Exchange's 33 industry groups, only two fell — air transport and mining — but declines were small.
Transport equipment led advancers with a 2.73% jump. The benchmark Japanese government bond yield rose to a nine-year high of 0.605% to start Monday trading, and then eased to 0.59%, after investors had the weekend to digest the BOJ's de facto doubling of the policy ceiling under yield curve control (YCC) to 1%. «The phrase 'ripping the band-aid off slowly' comes to mind,» Tony Sycamore, a markets analyst at IG, said of Friday's BOJ announcement.
Read more on economictimes.indiatimes.com
