BoJ Leaves Bond Prrogram Intact and Reiterates Inflation Target

Hiruki Nakamura
19 Jun, 2015
New York City

Nikkei average soared 0.9% and jumped 1.1% in the week after Bank of Japan left its bond purchase program intact and reiterated its inflation target timetable. Seven & I jumped on profit outlook. Mitsubishi UFJ Trust and Banking agreed to acquire fund administration business from UBS in Japan.

[R]4:30 PM Tokyo – Nikkei average soared 0.9% and jumped 1.1% in the week after Bank of Japan left its bond purchase program intact and reiterated its inflation target timetable. Seven & I jumped on profit outlook. Mitsubishi UFJ Trust and Banking agreed to acquire fund administration business from UBS in Japan.[/R]

Nikkei average in Tokyo gained after the Bank of Japan left its bond purchase program intact and offered an upbeat assessment of the economy and inflation.

By 8-1 vote, policy makers decided to keep intact the plan to increase monetary base by 80 trillion yen a year or $650 billion.

Bank of Japan Governor Haruhiko Kuroda reiterated the central bank’s estimate of inflation to pick up to 2% rate between April and September 2016.

The Nikkei 225 Stock Average jumped 183.42 or 0.9% to 20,174.24 and the broader Topix index increased 14.35 to 1,631.01.

For the week, Nikkei 225 dropped 1.1%.

The yen closed at 122.98 against a dollar.

Stocks in Review

Mitsubishi UFJ Financial Group Inc gained 0.6% to 860 yen after the Nikkei business daily said Mitsubishi UFJ Trust and Banking division agreed to acquire the fund administration business from Switzerland-based UBS AG for about 30 billion yen.

Seven & I Holdings Co., Ltd jumped 2.8% to 5,153 yen after the Nikkei news reported convenience stores operator’s operating profit for the first-quarter ending in May of about 81.5 billion yen after profit at the U.S. locations rose.

The retailer added as of May, domestic same-store sales increased for the 34th month in a row.

Sankyu Inc climbed 3.2% to 653 yen after the Nikkei daily said marine logistics company’s operating profit for the year ending in March is estimated to soar 13% to 24 billion yen and the company is targeting to increase return on equity to 9% from 8.6%.

Yokogawa Electric Corporation advanced 2.3% to 1,515 yen after the Nikkei Asian review stated measurement and control equipment maker’s plans to reduce costs by more than 40 billion yen in next three years.