source agencies
Japanese government bond yields rose and the Nikkei fell today after Japan’s central bank surprised markets yesterday by changing its yield curve control policy.
The benchmark 10-year government bond yield rose seven basis points to 0.480%, its highest level since July 2015 and close to the revised upper limit of 0.50% of the Bank of Japan’s policy range.
The Nikkei Index closed down 0.68% at 26387.72, its lowest closing level since October 13, after volatile trading that saw positive performance for a short time. The main index lost 3% on the back of the Bank of Japan’s decision, which aims to mitigate some of the costs of long-term monetary stimulus. The broader Topix index fell 0.64% to 1,893.32.
According to “Reuters”, the sub-index for automakers fell 2.36%, surpassing the losses of the other 32 industrial sub-indexes, after the yen rose on the back of the central bank’s move.
As for the banking sector, it rose 2.6 percent, and was the best performer among all sectors, amid expectations that higher interest rates would lead to increased profitability. The insurance sector also grew by 0.08%.
