Tokyo stocks rebounded sharply Monday morning, tracking Wall Street gains and lifted by export-related issues on the yen’s weakness even after the Bank of Japan decided to tweak its ultraloose monetary policy last week.
According to Japan’s Kyodo News Agency, the 225-issue Nikkei Stock Average rose 503.51 points, or 1.54%, from Friday to 33,262.74. The broader Topix index was up 31.28 points, or 1.37%, at 2,321.89, while gainers were led by transportation equipment, wholesale trade and precision instrument shares.
The central bank announced Monday a special open market operation to buy 300 billion yen worth of Japanese government bonds, the first such purchase since Feb. 22, following the spike in yields.
On the bond market, the yield on 10-year Japanese government bonds rose to 0.605%, the highest level since June 2014, after the BOJ said Friday it will allow the long-term yield to rise above its previous 0.5% cap toward 1.0%.
The US dollar rose to the upper 141 yen range in Tokyo.
Source: Qatar News Agency