TOKYO shares closed sharply higher Monday (Mar 18), with investors’ eyes on a possible upcoming interest rate hike from the Bank of Japan.
The benchmark Nikkei 225 index jumped 2.67 per cent or 1,032.80 points to 39,740.44, while the broader Topix index climbed 1.92 per cent or 51.19 points to end at 2,721.99.
“A sense of uncertainty over the Bank of Japan’s policy changes eased” following reports by major local media that the bank would likely drop its negative interest rate policy this week, IwaiCosmo Securities said.
The central bank started a two-day policy meeting Monday, with a press conference from governor Kazuo Ueda scheduled for Tuesday afternoon.
Despite the speculation on a long-awaited rate increase, Ueda is expected to voice broad commitment to maintain easy monetary conditions to safeguard Japan’s fragile growth.
The yen stood at 149.12 to the dollar, down from 149.08 yen seen Friday in New York, but better than recent lows.
Heavily weighted Fast Retailing, which operates the Uniqlo brand, jumped 4.73 per cent to 46,100 yen.
Semiconductor shares also enjoyed strong gains, with Tokyo Electron adding 3.76 per cent to 36,740 yen, and Advantest jumping 3.88 per cent to 6,686 yen.
Sony Group rose 2.03 per cent to 13,330 yen, and Toyota added 2.26 per cent to 3,567 yen. AFP
