31 Jul Japan’s Nikkei gains as BOJ policy decision lacks surprises
That signalled the central bank’s conviction that it can eventually resume hiking rates, although policymakers again sounded a cautious note on the economic outlook amid lingering uncertainties over global trade.
The Nikkei ended the day up 1% at 41,069.82, while the broader Topix added 0.8%.
Ahead of the policy decision, traders had firmed up bets for the BOJ to resume raising rates from as early as October after Tokyo reached a long-awaited trade agreement with Washington earlier this month, removing a degree of uncertainty from the economic outlook.
In its quarterly outlook report, the BOJ said that while trade talks had seen progress, uncertainty surrounding each country’s negotiations and the economic and inflationary impact remain high.
“The BOJ continues to be cautious on global risks, especially the tariff policy from the United States,” said Tohru Sasaki, chief strategist at Fukuoka Financial Group. “And actually, between Japan and the U.S., their understanding of the tariff agreement is totally different, so there’s still uncertainty.” On the Nikkei, earnings were a big driver of stock moves on Thursday. Kyocera jumped 9.5%, while Astellas Pharma climbed 6.1%.
At the other end, Panasonic Holdings slumped 3%.
Shares of companies that benefit from a drop in copper prices outperformed, with Fujikura rallying 6.6% and Furukawa Electric rising 5.8%.