Japan’s Nikkei Stock Average Erases Early Loss to End Higher on Remarks by BOJ Official

Jiji Press

Toky (Jiji Press)—Japan’s Nikkei 225 stock average wiped out its substantial early loss to end higher Wednesday, after the previous day’s historic gain, thanks to buying spurred by remarks by a senior Bank of Japan official showing a cautious stance about a further interest rate hike.

The key index finished Wednesday’s session at 35,089.62, up 414.16 points, or 1.19 pct, from Tuesday. The Nikkei average has been showing tumultuous moves this week, enjoying its biggest one-day point rise ever Tuesday after suffering a record drop just the day before.

The Nikkei plummeted more than 900 points in early Wednesday trading, on profit-taking after its gain of some 3,210 points Tuesday, which followed a loss of about 4,450 points Monday.

But buying on the Tokyo stock market picked up pace later in the morning after BOJ Deputy Governor Shinichi Uchida said in a speech on the day said that the central bank “will not raise its policy interest rate when financial and capital markets are unstable.” The Nikkei briefly rose over 1,100 points in the morning.