Japan Nikkei extends gains to 8th day

Japan share market finished session higher on Thursday, 24 March 2022, extending gains for eighth straight session, with sentiment recovering on a downward turn in crude oil prices, yen depreciation to 121 level against greenback, and portfolio adjustment near the end of the financial year.

At closing bell, the 225-issue Nikkei Stock Average advanced by 70.23 points, or 0.25%, to 28,110.39. The broader Topix index of all First Section issues on the Tokyo Stock Exchange gained by 2.86 points, or 0.14%, to 1,981.56.

ECONOMIC NEWS: BoJ Lifts Inflation Forecast Citing Rise In Commodity Prices- The Bank of Japan monetary policy board voted 8-1 to maintain its monetary policy stimulus unchanged at -0.1% on current accounts that financial institutions maintain at the central bank. It also lifted its inflation forecast for the next fiscal year, citing a rise in commodity prices, minutes from the bank's January 17-18 meeting revealed on Thursday. The bank also said it will continue to purchase a necessary amount of Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around zero%. Members of the Bank of Japan's Monetary Policy Board said that Japan's economic recovery is continuing at a satisfactory pace in the wake of the COVID-19 pandemic.

CURRENCY NEWS: The Japanese yen depreciated to upper 121-range against greenback on Thursday, on expectations the interest rate gap between the United States and Japan will widen as the Federal Reserve has hinted at more aggressive interest rate hikes to tackle inflation. At 5 p.m., the dollar stood at 121.61-62 yen, up from 121.07-07 yen at the same time Wednesday.

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