Nikkei rises 1.41%, Topix recovers from losses

Japan’s Nikkei index rose and the yen fell on Tuesday after the Bank of Japan kept its ultra-loose monetary policy unchanged and gave no hints of an early end to negative interest rates.

According to Reuters, the Nikkei rose 1.41% to end Tuesday at 33,219.39. The broader Topix index compensated for an early loss of 0.21%, closing up 0.73%.

The yen fell to 143.78 to the dollar following the central bank’s announcement, and was traded in the latest transactions down about 0.5% to 143.50.

“It appears that the Bank of Japan’s position on precisely assessing when to stop negative interest rates has not changed,” said Ryutaro Kimura, fixed income strategist at AXA Investment Managers.

The Bank of Japan kept its target for the short-term interest rate at negative 0.1% and for the 10-year government bond yield at about 0%, in line with expectations.

But he said in a statement that he “will not hesitate to take additional facilitative steps if necessary,” adding that uncertainty about the economy is very high.

Technology stocks continued their gains, with shares of Tokyo Electron, a giant for chip testing equipment, jumping 3.67 percent, and shares of Advantest, a manufacturer of chip testing machines, advancing 4.1 percent.

Shares of automakers rose, as the weak yen boosted expectations for revenues from abroad, while Toyota Motor rose 0.8% and Nissan rose 0.95%.

Banks were among the worst performers, with the end of stimulus that suppressed returns and crushed lending and investment profits. The banking services sub-index on the Tokyo Stock Exchange fell 0.43%.