Tokyo Stocks End Higher

Tokyo shares rebounded from earlier losses to end higher Tuesday, after the Bank of Japan scrapped its negative interest rate

Tokyo, (UrduPoint / Pakistan Point News - 19th Mar, 2024) Tokyo shares rebounded from earlier losses to end higher Tuesday, after the Bank of Japan scrapped its negative interest rate.

The benchmark Nikkei 225 index hiked 0.66 percent or 263.16 points to end at 40,003.60, while the broader Topix index climbed 1.06 percent, or 28.98 points, to 2,750.97.

The BoJ scrapped its negative interest rate on Tuesday as it finally began unwinding one of the world's most aggressive monetary easing programmes.

The maverick policy dating back to 2013 was aimed at jump-starting economic growth and inflation after the country's "lost decades" of stagnant activity and prices in the world's number four economy.

The bank also said it would call an end to other unorthodox policies including its yield curve control programme on bonds and the purchase of risk assets such as exchange-traded funds (ETFs), saying they had "fulfilled their roles".

The bank's decision was "widely expected for investors" and the "view that low interest rates will continue encouraged the buying of dollars", Daiwa Securities said.

The dollar stood at 150.31 yen, against 149.16 yen seen on Monday in New York.

A weaker yen was welcome news for export-driven stocks like Toyota, which surged 3.02 percent to 3,675 yen.

Among other major shares in Tokyo, SoftBank Group gained 0.35 percent to 8,821 yen, Sony Group added 0.97 percent to 13,460 yen and Nissan edged up 0.06 percent to 605.7 yen.