TOKYO, July 21(ABC): Tokyo stocks shrugged off early losses to close higher on Thursday after the Bank of Japan left its monetary easing policy unchanged. The benchmark Nikkei 225 index gained 0.44 percent, or 122.74 points, to end at 27,803.00, while the broader Topix index advanced 0.21 percent, or 4.15 points, to 1,950.59.
The BoJ’s decision leaves the central bank increasingly alone as its peers raise rates, with the European Central Bank expected later Thursday to announce its first rate increase in more than a decade.
“The Tokyo market opened lower on profit taking… but later bargain-hunting took over” and the Nikkei index stopped falling, Okasan Online Securities said in a note. One dollar bought 138.32 yen, up slightly from 138.26 yen on Wednesday in New York.
Before trading began, the finance ministry said Japan’s trade deficit expanded to a record high of 7.9 trillion yen ($57 billion) in the first half of the year, driven by rising fuel costs.
In Tokyo trading, industrial robot maker Fanuc firmed 1.96 percent to 22,530 yen while Nikon jumped 2.99 percent to 1,580 yen.
Uniqlo operator Fast Retailing added 0.59 percent to 80,020 yen. JFE Holdings dropped 3.21 percent to 1,473 yen while pharmaceutical company Shionogi tumbled 6.89 percent to 7,024 yen after a health ministry panel decided to postpone emergency approval of its coronavirus drug.