Japan's Nikkei Poised to Erase All Losses Since July 31 BOJ Hike
Japan's Nikkei 225 Stock Average rises as much as 0.5%, on track to erase all losses since July 31, when the Bank of Japan raised its benchmark interest rate and drove the yen higher. Topix falls as much as 0.5% Friday.
The blue-chip gauge climbed to as high as 39,223.07 shortly after the market opened in Tokyo, surpassing its close on July 31, the day the central bank hiked its policy rate to around 0.25% and unveiled plans to halve bond purchases. Within a week of the BOJ's move, the Nikkei 225 tumbled as much as 20%, diving deeper into a bear market.
Now the measure is headed for a three-week rally of about 7% as the yen trends lower as concerns over a hawkish BOJ recede, providing support for exporters. On Tuesday, Governor Kazuo Ueda reinforced his message that while the BOJ will raise its key interest rate again if data allow, authorities won't be in a hurry to do so.
Source : Bloomberg
