TOKYO, March 19 (Reuters) - Japan's benchmark Nikkei index fell while the broader Topix hit a 30-year high, as the Bank of Japan (BOJ) said it would only buy Topix-linked exchange traded funds after a review of its policy framework.
The Nikkei's fall accelerated after the BOJ said it would only buy ETFs that are linked to the Topix index. It also said it would buy up to 12 trillion yen ($110.21 billion) at most, and slightly broadened a trading band for its 10-year bond yield target, as widely expected. impact of the BOJ's move on the Nikkei will be limited," said Shingo Ide, chief equity strategist at NLI Research Institute. "It will contribute to a healthy correction in the NT ratio."
The so-called NT ratio .NTIDX of the Nikkei and Topix dropped to 14.81 from 15.04 on Thursday. It had hit a record high of 15.68 earlier this month.
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