TOKYO, – Japan’s Nikkei share average held onto early gains on Thursday after the Bank of Japan kept interest rates steady as was widely expected, while revising up inflation forecasts.
That signalled the central bank’s conviction that it can eventually resume hiking rates, although policymakers again sounded a cautious note on the economic outlook amid lingering uncertainties over global trade.
The Nikkei was up 0.9% at 41,015.31, as of 0351 GMT. The broader Topix traded 0.7% higher.
Investor focus now turns to BOJ Governor Kazuo Ueda’s press conference at 0630 GMT for hints on the timing of any rate increases.
Traders had firmed up bets for the BOJ to resume raising rates from as early as October after Tokyo reached a long-awaited trade agreement with Washington earlier this month, removing a degree of uncertainty from the economic outlook.
In its quarterly outlook report, the BOJ said while trade talks had seen progress, uncertainty surrounding each country’s negotiations, and the economic and inflationary impact remain high.
“The BOJ continues to be cautious on global risks, especially the tariff policy from the United States,” said Tohru Sasaki, chief strategist at Fukuoka Financial Group.
“And actually, between Japan and the U.S., their understanding of the tariff agreement is totally different, so there’s still uncertainty.”
On the Nikkei, earnings were the biggest driver of stock moves on Thursday. Kyocera jumped 8.6%, while Astellas Pharma climbed 6.9% and Nissan rose 2.6%.
At the other end, Panasonic Holdings slumped 3.4%.
Shares of companies that benefit from a drop in copper prices outperformed, with Fujikura and Furukawa Electric each rallying about 5.7%.
Startup investor SoftBank Group was another standout performer, advancing 3.2%.
This article was generated from an automated news agency feed without modifications to text.
About The Author
