Nikkei Falls from All-Time High after BOJ Decides to Sell ETFs

Tokyo, Sept. 19 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average fell from its all-time high on Friday, following the Bank of Japan’s decision to offload its holdings of exchange-traded funds. The Nikkei average hit a new intraday record high of 45,852.75 in early trading, led by semiconductor-related stocks. However, it briefly dived more than 800 points from the previous day’s close after the BOJ announced the policy decision in the early afternoon. The Nikkei closed the day at 45,045.81, down 257.62 points, or 0.56 pct. The broader TOPIX index dropped 11.19 points, or 0.35 pct, to 3,147.68, after also logging a new record intraday high. At its two-day Policy Board meeting, which ended Friday, the BOJ decided to maintain its short-term policy rate at around 0.5 pct and to sell to the market ETFs and Japanese real estate investment trusts, or J-REITs, that it had bought as part of its monetary easing policy. “The BOJ’s decision to sell ETFs had been predicted, but it provided a good reason for selling amid growing caution after the market repeatedly hit record highs,” said an official at a midsize securities firm. END [Copyright The Jiji Press, Ltd.]