Japanese Stocks Rise for Sixth Day as BOJ Maintains Stimulus

  • Energy shares rise, airlines fall on price of crude oil
  • Biotechnology slump snaps longest U.S. rally this year

Japanese stocks rose for a sixth day after the nation’s central bank maintained record monetary stimulus. Energy shares led gains as crude oil extended its rally from the highest close in more than a month.

Oil explorer Inpex Corp. surged 7.2 percent, while airlines fell the most among the 33 industry groups on the Topix index on prospects for higher fuel costs. Ryohin Keikaku Co., which operates the Muji brand, lost 6.9 percent after analysts said the company’s earnings report was slightly negative. Seibu Holdings Inc., operator of Japan’s biggest hotel chain, plunged 5.1 percent as trading volume surged.

The Topix climbed 1.2 percent to 1,493.17 in Tokyo to close at its highest level since Sept. 9 and cap its longest winning streak since August. The Nikkei 225 Stock Average added 0.8 percent to 18,322.98. The yen strengthened 0.2 percent to 119.97 per dollar after Bank of Japan Governor Haruhiko Kuroda and his board decided to keep increasing the monetary base at an annual pace of 80 trillion yen ($660 billion), as predicted by 34 of 36 analysts surveyed by Bloomberg last week.

“Expectations for further easing are deeply entrenched, leading us to a sixth consecutive day of gains,” said Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co. in Tokyo. Immediately after the BOJ meeting “we saw a sharp rise in the yen, but after that ended we’re seeing buying.”

Economic Outlook

Investors will be watching a Kuroda press conference from 3:30 p.m. in Tokyo for any hints of an adjustment in monetary policy at the next meeting on Oct. 30, when the central bank will provide an update on its outlook for inflation and economic growth. While more than a third of economists surveyed by Bloomberg say Kuroda may be able to avoid increasing stimulus, a larger number expect him to boost asset purchases at the next meeting of his policy board.

Energy shares led gains, with Inpex rising 7.2 percent, while oil servicing firm Chiyoda Corp. jumped 6 percent. Oil headed for its longest rally in almost six months as U.S. industry data showed crude stockpiles fell. Airlines dropped, with ANA Holdings Inc. and Japan Airlines Co. losing at least 1.7 percent.

Electronics retailer Yamada Denki Co. surged 6.6 percent after Mitsubishi UFJ Morgan Stanley Securities Co. raised its rating on the company. Other retailers were a mixed bag. Ryohin Keikaku slumped 6.9 percent despite beating analyst estimates in the quarter ended August and raising its first-half dividend. The results were slightly negative, according to SMBC Nikko Securities Inc., which cited the company’s operating profit margin for east Asia. Department store operator J Front Retailing Inc. rose 3.2 percent after increasing its operating profit forecast.

Seibu Drops

Seibu dropped 5.1 percent, the most since Ausust. Almost 4.5 million shares changed hands, compared with the three-month daily average of 1.5 million.

E-mini futures on the Standard & Poor’s 500 Index rose 0.2 percent after the underlying gauge fell 0.4 percent in New York on Tuesday as a rout in biotechnology shares snapped the longest rally in U.S. stocks this year.

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