Nikkei index closed higher after BOJ kept monetary policy unchanged

The Japanese Nikkei index ended the trading session on Friday, June 14, with a rise and recorded weekly gains after the Bank of Japan announced that it intends to reduce bond purchases in the future to allow long-term interest rates to move more.

The Nikkei index ended today’s session up 0.2% to 38,814 points and had stabilized at the end of the morning session after the Bank of Japan announced its decision. The broader Topix index continued its morning gains, rising 0.5% at the close, according to Agence France-Presse.

The Bank of Japan said it intends to reduce its bond-buying program to ensure freedom of formation of long-term interest rates in financial markets, but it will not present details of its plan to reduce the monetary stimulus program except at the July meeting after a dialogue with dealers.

The Bank of Japan indicated that it will collect opinions from market participants before the next monetary policy meeting, and will decide on a detailed plan on reducing the amount of purchases for the next year or two.