Tokyo Stocks Rally in Wake of BOJ Monetary Easing Moves

Jiji Press

16:27 JST, July 31, 2023

TOKYO (Jiji Press) — Tokyo stocks rebounded Monday as investors weighed the Bank of Japan’s decision last week to continue monetary easing despite a policy tweak.

The Nikkei average of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section gained 412.99 points, or 1.26%, to finish at 33,172.22.

The broader TOPIX index ended 31.95 points, or 1.39%, higher at 2,322.56.

“Although the BOJ’s surprise decision Friday to make its yield curve control more flexible initially spurred selling, stocks attracted buying Monday as market players welcomed the fact that the BOJ stressed it would keep its monetary easing efforts intact,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co..

The policy tweak prompted some investors to overly sell, and such players were forced to buy back stocks Monday, said Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co.

After the Nikkei average rose more than 600 points in the morning to approach its year-to-date high above 33,700, the market was capped by selling to lock in profits, market sources said.

Trading house Toyota Tsusho and printer manufacturer Seiko Epson shot up 9.88% and 5.16%, respectively, after they each upgraded their net profit forecasts for the year through next March.