Japan stock market finished session modestly higher on Friday, 26 April 2024, as bottom fishing resumed after the Bank of Japan kept its key interest rate unchanged at 0%-0.1% and stopped short of signalling another hike

The 225-issue Nikkei Stock Average index advanced by 306.28 points, or 0.81%, to finish at 37,934.76. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose by 22.95 points, 0.86%, to 2,686.48.

Total 30 of 33 TSE sectors closed higher, with Marine Transportation sector being top performer in%age term, rising 2.47%, followed by Real Estate (up 2.26%), Pharmaceutical (up 2%), and Insurance (up 1.96%) sectors, while Chemicals issue was bottom performer, falling 1.04%.

Daiichi Sankyo jumped 5.12% to 5,010 yen after the drugmaker announced a share buyback and an increase in dividend payments.

Honda closed up 0.26% to 1,750 yen after it announced an investment in Canada worth Can$15 billion (US$11 billion) for a new EV battery and vehicle assembly plant.

ECONOMIC NEWS: Bank of Japan Keeps Rates Unchanged, Raises Inflation Forecast- The Bank of Japan (BoJ) maintained its key short-term interest rate at around 0% to 0.1% in April, following its first rate hike since 2007 in March. The central bank also committed to continuing bond purchases, aligning with its March decision. In its quarterly outlook, the BoJ raised its CPI forecast for FY 2024 to 2.8% from 2.4% due to diminishing effects of higher import prices. The board anticipates core inflation to reach 1.9% in 2025, up from earlier estimates of 1.8%, citing a recent uptick in oil prices. However, the BoJ reduced its GDP growth forecast for 2023 to 1.3% from 1.8% and for FY 2024 to 0.8% from 1.2%, primarily due to lower private consumption.

CURRENCY NEWS: The Japanese yen slid to fresh 34-year lows at 156.22 per greenback before easing to 156.01 yen in late Tokyo hours.

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