TOKYO Dec 20 Japan's Nikkei share average rose
on Tuesday afternoon after the market digested the Bank of
Japan's decision to maintain current monetary policy, while the
yen's fall versus the dollar lifted overall sentiment.
The Nikkei gained 0.6 percent to 19,504.64 in
mid-afternoon trade, after staying nearly flat in the morning
The BOJ kept monetary policy steady on Tuesday and took a
more upbeat view of the economy than of late, reinforcing market
expectations that its future policy direction could be an
increase - not a cut - in interest rates.
"There was no particular surprise from the policy meeting,
but investors are happy that the economy's fundamentals are
finally rising after the BOJ expressed an upbeat view of the
economy," said Takuya Takahashi, a strategist at Daiwa
The U.S. dollar advanced 0.4 percent to 117.57 yen, after
closing 0.7 percent lower on Monday.
Takahashi added that despite the weakening yen, the rising
sectors are mainly composed of stocks sensitive to domestic
"Buying is limited to stocks that fell behind the rises in
exporters and banks in the past month or so," Takahashi said.
The land transport subsector rose 1.3 percent and
the real estate subsector gained 0.9 percent.
East Japan Railway Co added 1.7 percent, West Japan
Railway Co rose 2.1 percent. Real-estate developer
Mitsui Fudosan Co gained 1.3 percent.
Japanese stocks have soared in the past month or so thanks
to a surging dollar, which gained against the yen on
expectations that the incoming the Trump Administration will
boost fiscal spending, growth and inflation.
Traders said that trading volume is expected to be low again
as foreign investors head off on Christmas holidays this week.
On Monday, both trading volume and turnover were the lowest
since Nov. 8.
The broader Topix added 0.2 percent to 1,551.95 and
the JPX-Nikkei Index 400 advanced 0.2 percent to
(Reporting by Ayai Tomisawa; Editing by Eric Meijer)