Japan Stocks mostly lower on BOJ's ETF purchase plan

Japan share market finished session mixed on Friday, 19 March 2021, as investor sentiment turned cautious, following an overnight selloff stateside and as the Bank of Japan statement to only buy Topix-linked exchange traded funds after a review of its policy framework.

At closing bell, the 225-issue Nikkei Stock Average declined 424.70 points, or 1.41%, to 29,792.05. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 3.70 points, or 0.18%, to 2,012.21.

Total 21 out of 33 industry category of Topix index ended into positive territory, with Marine Transportation, Iron & Steel, Banks, Securities & Commodities Futures, Real Estate, and Insurance issues being notable gainers, whereas Mining, Information & Communication, and Rubber Products issues were notable losers.

Japan's central bank concluded its two-day monetary policy meeting. It announced a raft of measures that included a decision to widen the range at which the 10-year Japanese government bond yield is allowed to fluctuate from the target level to between plus and minus 0.25%.

Japan's government bond yields rose on report that the Bank of Japan is considering widening the trading range around the 10-year target, which could spur concerns about policy tightening. The BOJ said it would only buy ETFs that are linked to the Topix index. It also said it would buy up to 12 trillion yen ($110.21 billion) at most, and slightly broadened a trading band for its 10-year bond yield target.

Shares of sea transport sector advanced. Nippon Yusen jumped 4.2%, Mitsui OSK Lines rose 2.8% and Kawasaki Kisen gained 2.7%.

Shares of Japan's top three banks gained amid rising interest rates, with Mizuho Financial adding 1.4%, Sumitomo Mitsui Financial up 2% and Mitsubishi UFJ Financial climbing 1.9%.

CURRENCY NEWS: The Japanese yen changed hands at 108.74 per dollar, strengthening from an earlier level around 109.12.

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