Japan's Nikkei hits 34-year high on Wall Street boost, dovish BOJ

Lasertec

23/01/2024 03:47

(Updates with BOJ policy decision and market reaction)
    By Kevin Buckland
       TOKYO, Jan 23 (Reuters) - Japan's Nikkei share average
rose to a 34-year peak on Tuesday, buoyed by Wall Street's climb
overnight to a fresh record high and the Bank of Japan's (BOJ)
decision to keep ultra-easy policy settings intact.
    Japanese stocks received an additional tailwind from a
rebound in Chinese equities amid hopes for additional stimulus
measures from Beijing.
    The Nikkei  .N225  climbed as much as 1.2% to 36,984.51
after reopening from the midday recess, a level not seen since
February 1990. It was 1.01% higher at 36,915.87 as of 0333 GMT. 
    The BOJ decision came while the market was in the break,
with policy makers keeping its short-term rate target at -0.1%
and that for the 10-year bond yield around 0%, as had been
widely expected.
    Focus now turns to BOJ Governor Kazuo Ueda's news conference
from around 0630 GMT.
    The Nikkei had already renewed its multi-decade high right
at the open, taking cues from the U.S. S&P 500  .SPX , which 
closed at a record high for a second consecutive session
overnight, with tech stocks the standout winners.  .N 
    "In the absence of any clear drivers, stocks seemed to like
the retreat in bond yields," said Kazuo Kamitani, an equity
strategist at Nomura Securities in Tokyo.
    The 10-year U.S. Treasury yield  US10YT=RR  dipped to a low
of 4.075% on Monday, from a high of 4.198% at the end of last
week.
    If yields remain subdued and U.S. stocks stay firm, and if
the yen is stable at current levels of around 148 per dollar
 JPY=EBS , "there would be nothing at all strange if the Nikkei
hit 37,000," Kamitani said.
    Several Japanese semiconductor-sector stocks outperformed on
Tuesday. Lasertec  6920.T  gained 3.43%, while heavyweights
Tokyo Electron  8035.T  and Advantest  6857.T  rose 0.61% and
0.83%, respectively.
    Japan's broader Topix index  .TOPX  advanced 0.5%, and also
marked a fresh 34-year high during the session. A Topix index of
growth shares  .TOPXG  jumped 0.71% to comfortably outpace a
0.19% gain in value shares  .TOPXV .

 (Reporting by Kevin Buckland; Editing by Savio D'Souza and
Mrigank Dhaniwala)
 ((Kevin.Buckland@thomsonreuters.com;))