Japan's Nikkei eases from eight-month peak; eye on BOJ meet

Hoya

21/04/2023 07:51

By Junko Fujita and Ankur Banerjee
       TOKYO, April 21 (Reuters) - Japan's Nikkei share average
slipped on Friday, easing away from an eight-month peak it
touched earlier in the session as investors refrained from
making active bets ahead of the Bank of Japan's policy meeting
next week.
    The index  .N225  closed 0.33% lower at 28,564.37, after
rising to 28,778.37, its highest level since Aug. 26. The index
is on course for fourth straight month of gains - the last time
it went on a similar run was in 2021.
    The broader Topix  .TOPX  ended the day down 0.20% at
2,035.57, but clocked its second straight week of gains.  
    "Gains on the Nikkei were capped as investors awaited the
outcome of the BOJ's policy meeting," said Yugo Tsuboi, a senior
strategist at Daiwa Securities. "But the trend that investors
seek to buy undervalued stocks has not changed." 
    Corporate governance in Japan has suddenly become a hot
topic, rousing the stock market out of decades of lethargy, with
foreign investors purchasing roughly 1.59 trillion yen worth of
Japanese shares last week, their biggest buying in five years.
    Paul O'Connor, head of multi-asset at Janus Henderson
Investors, said 2023 could be a year when investors value
resilience of Japanese companies profit growth.
    "This year, Japanese stocks look set to deliver faster
earnings growth than equity markets in the eurozone, UK and the
United States."
    The BOJ is scheduled to hold a two-day meeting next week.
Nearly 90% of economists polled by Reuters said the central
bank's new chief Kazuo Ueda will not start unwinding its
ultra-easy policy at the meeting.    
    Uniqlo brand owner Fast Retailing Co Ltd  9983.T  was the
Nikkei's biggest drag, sliding 1.54%, while technology investor
SoftBank Group Corp  9984.T  lost 1.73%.
    Precision machine maker Disco Corp  6146.T  surged 14% to
become the top gainer on the TSE's prime market  .TSPM  after
posting a record group annual operating profit.

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ANALYSIS-Investors seek to break through Japan Inc's 'value
trap'     urn:newsml:reuters.com:*:nL1N36N0LA
Japanese stocks draw biggest weekly foreign inflows since 2018  
  urn:newsml:reuters.com:*:nL4N36N1WJ
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 (Reporting by Junko Fujita; Editing by Sonia Cheema and Sohini
Goswami)
 ((junko.fujita@thomsonreuters.com;))