Tokyo stocks mixed as tech, BOJ meet weigh while energy shares gain

TOKYO (Kyodo) — Tokyo stocks ended mixed Friday, as technology heavyweights were sold amid a cautious mood before the Bank of Japan’s policy meeting, while energy issues were boosted by a rise in U.S. oil futures.

The 225-issue Nikkei Stock Average ended down 99.74 points, or 0.26 percent, from Thursday at 38,707.64. The broader Topix index finished 9.21 points, or 0.35 percent, higher at 2,670.80.

On the top-tier Prime Market, gainers were led by mining and oil and coal product issues, while top decliners were marine transportation and bank issues.

The U.S. dollar strengthened to the mid-148 yen range late in Tokyo trading as dealers adjusted their positions ahead of the weekend and next week’s monetary policy meetings at the U.S. Federal Reserve and the BOJ, analysts said.

At 5 p.m., the dollar fetched 148.57-59 yen compared with 148.27-37 yen in New York and 147.86-88 yen in Tokyo at 5 p.m. Thursday.

The euro was quoted at $1.0880-0881 and 161.65-69 yen against $1.0877-0887 and 161.37-47 yen in New York and $1.0935-0936 and 161.69-73 yen in Tokyo late Thursday afternoon.

The yield on the benchmark 10-year Japanese government bond ended at 0.785 percent, up 0.010 percentage point from Thursday’s close, as the debt was sold amid growing expectations that the BOJ could decide to end its negative interest rate policy in the two-day meeting starting Monday.

Trading on the equities market was subdued on caution over the BOJ’s possible policy shift from years of aggressive monetary easing, analysts said.

The Nikkei index shed nearly 1,000 points this week after rewriting all-time highs several times this year, briefly sending the benchmark above 40,000 in early March.

Chip-related stocks that have a strong influence on the Nikkei index further lost ground in the afternoon as the tech-heavy Nasdaq futures dropped, analysts said.

But the broader Topix was mostly higher, with energy firms helping to limit the downside. Oil explorer Inpex was among the companies drawing buying after the benchmark U.S. oil futures contract rose to a four-month high as the International Energy Agency lifted its oil demand projection for 2024.