Tokyo stocks rebound after BoJ statement on virus



Tokyo stocks rebounded from opening losses on Monday, snapping a five-day losing streak as the Bank of Japan pledged support, hoping to ease worries over the coronavirus outbreak.

The benchmark Nikkei 225 index rose 0.95 percent, or 201.12 point, to close at 21,344.08, while the broader Topix index gained 0.99 percent, or 15.00 points, to 1,525.87.

Investors are “watching the number of patients short-term, while governments of relevant countries are readying measures” including economic stimulus, Yukino Yamada, senior strategist at Daiwa Securities, said.

In a rare statement, the Bank of Japan said it “will strive to provide ample liquidity and ensure stability in financial markets” to divert risks linked to instability in global markets caused by the spread of the disease.

The announcement came after Federal Reserve boss Jerome Powell on Friday said the US central bank was following developments in the virus outbreak and said it “will use our tools and act as appropriate to support the economy”.

The dollar rose to 108.28 yen in the afternoon, from around 107.70 yen in the morning.

The BoJ statement “prompted purchases”, Okasan Online Securities analyst Yoshihiro Ito said, adding gains of Chinese shares also helped buoy Tokyo shares.

In Tokyo, some blue-chip exporters rebounded after opening lower, with Toyota climbing 0.37 percent to 7,154 yen and Panasonic 0.53 percent to 1,036 yen.

Sony surged 3.96 percent to 6,873 yen and Nintendo jumped 2.26 percent to 37,090 yen.

Source: AFP