Tokyo Stock Exchange down 0.68% after Bank of Japan decision

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The main index of the Tokyo Stock Exchange, the Nikkei, fell 0.68% in Wednesday’s session after the Bank of Japan (BoJ) yesterday extended the trading range for long-term government bonds and following a sharp appreciation of the yen.

The Nikkei, which groups the 225 most representative titles of the market, fell 180.31 points, to stand at 26,387.72 integers.

The selective Topix, which includes the firms in the main section, the largest capitalization, lost 0.64% to 1,893.32 units.

The Tokyo parquet opened lower on Wednesday after the announcement of the BoJ that it will keep the reference interest rates unchanged, but will slightly extend the range of the yield of ten-year bonds, reducing to some extent its easing strategy.

This decision was interpreted on the eve as a first step towards the adjustment of the monetary policy of the BoJ and immediately caused a fall of more than 2% in the Tokyo Stock Exchange and a rapid appreciation of the yen, which moved today in the range of 131.48 to 132.37.

In the main sector, losses were led by transport companies, household appliances and real estate companies.

Among the stocks with the largest market capitalization in Tokyo, tech giant Softbank ended down 1.29%, while Japan’s automotive leader, Toyota Motor, lost 2 %.

In the semiconductor sector there were also losses, such as Lasertec (0.19%) and Tokyo Electron (1.49 %). They also highlighted the setbacks of the video game giant Nintendo (0.01%) or the textile multinational Fast Retailing, owner of clothing store chain Uniqlo, which lost 0.17%.

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On the other side of the coin, Japanese banks and insurers rose sharply after the Japanese central bank’s decision, which raises the upper bound of long-term borrowing costs.

Among Japan’s leading banks, the Mitsubishi UFJ Group rose 3.92% and Sumitomo Mitsui 4.12 %.

In the main section, 1,388 retreated, while 400 advanced and 50 ended the day unchanged.

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