Stocks made hefty gains Friday thanks to the continuing effects of the Bank of Japan’s new monetary easing policy, with the Nikkei average topping 13,000 for the first time since Aug. 29, 2008, on an intraday basis.
At the close, the Nikkei 225 was up 199.10 points, or 1.58 percent, at 12,833.64, rising for a third consecutive day and posting its best finish since Sept. 1, 2008. The Topix index was up 28.48 points, or 2.74 percent, at 1,066.24, also scoring a higher finish for the third day in a row and its highest close since Oct. 2, 2008.
Market activities were extremely robust, with volume on the first section hitting a record high of 6.449 billion shares, up from 4.270 billion Thursday. The previous all-time daily high of 5.777 billion shares was marked March 15, 2011.
Stocks opened sharply higher, as the market remained in a cheerful mood after the BOJ adopted a bold “quantitative and qualitative” monetary easing regime Thursday.
The Nikkei briefly rose to as high as 13,225.62 — a gain of 591 points — on the back of expectations for a recovery in corporate earnings amid the yen’s sharp decline. The dollar briefly climbed above ¥97 in Tokyo trading Friday, retaking the level for the first time since August 2009.
Both the Nikkei and the Topix, however, gradually cut early gains in the afternoon, hit by profit-taking and position adjustment selling prior to the release of U.S. jobs data for March later Friday.
“The BOJ’s action gave a boost to global financial markets,” said Hiroichi Nishi at SMBC Nikko Securities Inc.
Still, in afternoon trading “market participants held back active purchases as they are worried that New York stocks could come under selling pressure if the U.S. jobs data turn out to be disappointing,” said Yutaka Miura at Mizuho Securities Co.
Key 10-Year JGB rebounds
A key 10-year Japanese government bond yield rebounded sharply after hitting an all-time low of 0.315 percent Friday in volatile trading after the Bank of Japan’s move to up its JGB buys substantially the day before.
The yield on the latest 328th 10-year JGB issue with a 0.6 percent coupon stood at 0.480 percent in late interdealer trading, up from 0.455 percent late Thursday, after hitting the record low in the morning and briefly surging to 0.620 percent in the afternoon. The previous all-time low for a key 10-year JGB yield, of 0.425 percent, was set Thursday.