Japan Shares Gain as Cenbank Eases Concerns over Yields


TOKYO, March 8 Reuters Japanese shares rose on Monday as the central bank governors remarks eased speculation that yields on government bonds would be allowed to rise, while optimism over a 1.9 trillion U.S. pandemic relief plan also underpinned sentiment.

The Nikkei share average rose 0.66 to 29,050.17 by 0218 GMT, while the broader Topix rose 0.82 to 1,911.68.

Bank of Japan Governor Haruhiko Kuroda said on Friday he saw no need to widen an implicit band set for its longterm interest rate target at a policy review this month, stressing the need to keep borrowing costs low to support a pandemicravaged economy.

Kurodas remarks are having a strong impact on the stock market, said Norihiro Fujito, chief investment strategist, Mitsubishi UFJ Morgan Stanley Securities.

Investors were prepared to sell bonds at a loss and compensate that loss with a gain from selling stocks. But Kurodas view has completely changed that direction, Fujito said.

The rise in Japanese shares also followed the passing of the COVID19 stimulus bill by the U.S. Senate and a surprisingly strong U.S. payrolls report that augured well for a global economic rebound.

Takeda Pharmaceutical jumped 4.18 after the drugmaker said it had sought approval for the use of Modernas COVID19 vaccine.

Japans biggest steelmaker, Nippon Steel Corp, advanced 4.08 after the company said it would further reduce capacity due to falling domestic demand and intensifying competition from China.

Japans biggest oil and gas…

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