Nikkei index records largest weekly gain in two months

Today, Friday, the Japanese Nikkei index recorded its largest weekly jump in more than two months, with the index recouping all its losses since the Bank of Japan’s sudden adjustment to one of its policies last month, but caution about local profits limited the gains.

According to Reuters, the Nikkei index rose 0.07 percent to end the session at 27,382.56 points, after trading in the negative zone. The index recorded a weekly gain of 3.12 percent, the largest since the week ending November 11.

“Investors sold shares after the Nikkei index recovered all of the declines caused by the Bank of Japan’s policy adjustment last month,” said Jun Morita, general manager of research at Shibagen Asset Management.

“Also, amid the earnings season, investors are cautious about negative surprises after Nydec published disappointing forecasts,” he explained.

The sudden policy adjustment made by the Bank of Japan on December 20 to widen the trading band for the 10-year government bond yield pushed the index lower.

The Nikkei index rose 4.94 percent this month, and it has been on an upward trend since the Bank of Japan kept its monetary easing policy unchanged at its meeting last week.

Investors were disappointed by Nidec Motors after it cut its full-year operating profit forecast by nearly half, sending the stock down 7 percent in the following session.

But in Friday’s session, Nydic shares jumped 3.05 percent and recorded a weekly gain of 2.43 percent.

Toyota Motor also rose 0.4 percent after it was announced that Akio Toyoda would step down from the position of president and chief executive officer to become chairman of the board as of April 1, and hand over the helm of Japan’s largest automaker to chief brand officer Koji Sato. ‏

The broader Topix index rose 0.22 percent to 1982.66 points, recording a weekly gain of 2.9 percent.

The banking sector recorded gains of 2.51 percent, becoming the biggest gainer among 33 sub-indicators, while the shipping sector declined 3.62 percent, becoming the worst performer.