Topix Trades in Tight Range as Volume Sinks; SoftBank Dominates

Japanese shares traded in a tight range amid a lull in activity, as oil companies led gains following a jump in crude prices while so-called defensive stocks dropped.

The Topix slipped less than 0.1 percent to 1,315.94 at the trading break in Tokyo, with volume 36 percent below the 30-day intraday average. The benchmark index traded between gains and losses of as much as 0.2 percent. Its 20-day correlation with the yen slumped to the lowest this year, meaning equities and the currency are moving more independently from each other. The Nikkei 225 was down 0.3 percent, while a measure tracking its volatility sank to near its lowest level since August.

Source : Bloomberg

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Japan Stocks Retreat After Yen Jumps as Exporters Weigh on Topix

Shares in Tokyo fell, with the benchmark equity index heading toward its lowest level in almost three weeks, after the yen jumped following the Bank of Japan’s policy decision and as data showed the U.S. economy grew less than expected last quarter.

The Topix index retreated 1.5 percent to 1,302.73 as of 9:10 a.m. in Tokyo, on course for its lowest close since July 13. Carmakers and electrical-appliance manufacturers were the biggest drags on the gauge. The Nikkei 225 Stock Average sank 1.3 percent. The yen lost 0.3 percent to 102.35 per dollar after strengthening 3.1 percent on Friday, the most since Britain voted to leave the European Union.

The BOJ said it will almost double its annual exchange-traded fund purchases to 6 trillion yen ($ 59 billion) on Friday while leaving bond buying and its negative deposit rate unchanged, whipsawing Japanese equity markets as financial shares surged while real estate companies slumped.

The Topix fell 16 percent this year through Thursday, before the BOJ policy announcement, with much of that decline coming after the central bank introduced negative interest rates in January. A gauge of bank shares plunged 34 percent through Thursday, while the yen strengthened 14 percent against the dollar. Financial shares led gains on Friday, with Mitsubishi UFJ Financial Group Inc. surging 7.7 percent.

Source: Bloomberg

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