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Tokyo: Nikkei rises to record high before BOJ decision, JGB yield climb

Tokyo: Nikkei rises to record high before BOJ decision, JGB yield climb

By Kim Browne

Culture

Japan’s Nikkei share average rose to a record high on Thursday, shaking off early weakness, as investors awaited the Bank of Japan’s latest policy decision.

Japanese government bond (JGB) yields climbed, mirroring moves in US Treasuries. The yen strengthened slightly to 152.56 per US dollar, stabilising after a 0.3 per cent drop in the previous session.

The tech-heavy Nikkei added as much as 0.4 per cent to reach 51,513.66 for the first time, before last trading at 51,417.50.

The broader Topix gained 0.4 per cent to 3,290.03.

The BOJ is widely seen leaving policy unchanged later in the day, with traders focused on any signs that an interest rate hike might be coming at the next meeting in December or the following one in January.

The policy announcement doesn’t have a set time, but generally comes between 0330 GMT and 0500 GMT.

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The two-year JGB yield rose 1 basis point to 0.95 per cent, matching the level reached on Oct 1, which was the highest since June 2008.

Other cash JGB tenors had yet to trade.

Benchmark 10-year JGB futures declined 0.22 yen to 135.91 yen. Yields rise when bond prices fall. REUTERS

Originally published by businesstimes.com.sg. Syndicated material does not necessarily reflect the views of Grazia British.

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