“Japan’s Topix Index (TPX) jumped the most in eight weeks as the yen slumped after the Bank of Japan (8301) doubled monthly bond purchases in its first policy decision since Haruhiko Kuroda took over as governor.
The Topix climbed 2.7 percent to close at 1,037.76 in Tokyo, the biggest gain since Feb. 6. The gauge reversed a 2 percent loss after the decision, with more than seven stocks rising for each that fell. The Nikkei 225 Stock Average (NKY) added 2.2 percent to 12,634.54. Volume was 42 percent above the 30-day average. The yield on the country’s 10-year government bonds slumped 12.5 basis points to a record low of 0.425 percent.
“We’re getting a sea change in monetary policy and it’s happening fast, said Kazuyuki Terao, Tokyo-based chief investment officer at Allianz Global Investors Japan Co. ‘‘That was what markets had expected, but it’s still positive.”
Sumitomo Realty & Development Co. surged 10 percent to pace gains among property companies, which rose the most among the 33 Topix industry groups. Honda Motor Co. (7267), a carmaker that gets 81 percent of its revenue outside Japan, climbed 3.4 percent, bouncing back from a 3 percent decline. Fujifilm Holdings Corp., which has a bird flu treatment under regulatory review, rose 5.7 percent after the disease took a third life in China.
The Topix has rallied 44 percent since mid-November amid optimism Prime Minister Shinzo Abe’s new government and the Bank of Japan would take more steps to beat deflation. Thegauge traded at 15.6 times estimated earnings on average, compared with 14 for the Standard & Poor’s 500 Index and 12.6 for the Stoxx Europe 600 Index.
