TOKYO (Reuters) – Japan’s Nikkei stock average posted its biggest weekly gain in more than two months on Friday as the index recovered all losses since the Bank of Japan’s unexpected policy adjustment last week. . But concerns over domestic earnings also capped the gains.
The Nikkei Stock Average rose 0.07% to end the session at 27,382.56 after trading in negative territory. The index rose 3.12% for the week, its highest since the week ending Nov. 11.
“Investors sold stocks after the Nikkei made up for all the losses caused by the Bank of Japan’s policy adjustment last month,” said Jun Morita, head of research at Chibagin Asset Management.
“Also, in the middle of earnings season, investors are wary of negative surprises after Nidec issued a disappointing outlook.”
An unexpected policy adjustment by the Bank of Japan to widen the trading range on 10-year JGB yields on Dec. 20 weighed on the index.
The Nikkei average is up 4.94% so far this month, an upward trend since the central bank kept its ultra-accommodative policy at last week’s policy meeting.
Electric motor maker Nidec disappointed investors by slashing its full-year operating profit forecast by almost half, sending its share price down 7% in the following session.
On Friday, Nidec jumped 3.05%, posting a weekly gain of 2.43%.
Wafer maker Shin-Etsu rose 4.09% after raising its full-year profit forecast.
Toyota Motor Corp. announced that President Akio Toyoda will step down as president and CEO effective April 1, handing over the helm of Japan’s largest automaker to top branding officer Koji Sato. Seesaw traded up 0.4%.
The broader Topix rose 0.22% to 1,982.66, up 2.9% for the week.
Core consumer prices in the Japanese capital, a leading indicator of national trends, rose 4.3% year-on-year in January, the fastest annual increase in almost 42 years.
The banking sector rose 2.51% to become the top performer among the 33 industry sub-indexes, while the shipping sector fell 3.62% to be the worst sector. ($1 = 129.7300 Yen) (Reported by Junko Fujita; Edited by Uttaresh.V)