Japan's Nikkei dips on BOJ's ETF purchase plan; Topix at 30-year high

  • Reuters
  • Stock Market News
Japan's Nikkei dips on BOJ's ETF purchase plan; Topix at 30-year high
Credit: © Reuters.

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 share average .N225 closed 1.41% lower at 29,792.05, while the broader Topix .TOPX inched up 0.18% to 2,012.21, its highest since 1991.

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.

Nikkei heavyweights fell, with Uniqlo clothing store operator Fast Retailing 9983.T shedding 6.1% and start-up investor SoftBank Group 9984. losing 2.46%.

Blue-chip technology shares also declined, with Tokyo Electron 8035.T dropping 2.59% and Fanuc 6954.T slipping 2.93%.

The sea transport sector advanced. Nippon Yusen 9101.T jumped 4.24%, Mitsui OSK Lines 9104.T rose 2.77% and Kawasaki Kisen 9107.T gained 2.74%.

Japan's top three banks gained amid rising interest rates, with Mizuho Financial 8411.T adding 1.39%, Sumitomo Mitsui Financial 8316.T up 1.95% and Mitsubishi UFJ Financial 8306.T climbing 1.92%.

Fast Retailing was the biggest percentage loser in the Nikkei, followed by Kikkoman 2801.T , losing 3.98%, and Konami Holdings 9766.T , down by 3.66%.

The top percentage gainers in the index were Fukuoka Financial Group 8354.T , up 6.36%, followed by Japan Post Holdings 6178.T , gaining 4.48%, and Honda Motor 7267.T , up 4.45%. ($1 = 108.8800 yen)

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