Nikkei rebounds from 1-month low; BOJ awaited

jueves 18 de junio de 2015 22:10 GYT

* BOJ board members' stances on Kuroda's view focused -
    * Foreigners' Japanese stock holding hits record level in

    By Ayai Tomisawa
    TOKYO, June 19 (Reuters) - Japan's Nikkei share average
rebounded from a one-month low on Friday as buyers took
advantage of recent dips, but trade was cautious ahead of a Bank
Of Japan policy decision and its governor's comments after the
    The Nikkei share average rose 0.7 percent to
20,131.95 points by mid-morning after dipping below the
20,000-mark for the first time since mid-May.
    At the two-day meeting ending on Friday, the BOJ is expected
to maintain its massive asset buying programme and pledge to
increase base money at an annual pace of 80 trillion yen ($650
    Analysts said that although the market recovered from a drop
on the previous day, it could still be volatile depending on the
outcome of the BOJ meeting.
    "We need to keep an eye on how board members comment on
Kuroda's view," said Norihiro Fujito, senior investment
strategist at Mitsubishi UFJ Morgan Stanley Securities.
    Some board members have openly challenged Kuroda's view that
the massive stimulus is working, including Takehiro Sato, who
said the programme has become less effective in pushing down
long-term interest rates.
    "A widely expected view is that the BOJ gives no surprises.
But if another member opposes easing, the stock market may be
hit," Fujito said.
    Exporters rebounded, with Honda Motor Co rising 1.6
percent and Panasonic Corp gaining 1.2 percent.
    Seven & i Holdings soared 2.7 percent after the
Nikkei business daily reported that the supermarket operator
likely logged an operating profit of around 81.5 billion yen
($655 million) for the March-May quarter, the record
first-quarter profit.
    Market sentiment was also supported by data showing strong
foreigners' appetite in the Japanese market.
    According to the Tokyo Stock Exchange, foreigners held a
record 31.7 percent of Japanese stocks as of March, the end of
the last fiscal year.
    "Foreign investors were attracted to Japanese stocks mainly
because of their recovering fundamentals," said Shingo Kumazawa,
an analyst at Daiwa Securities, adding that more foreign buying
is expected in the coming months on the back of stronger
shareholder returns and Japan's first corporate governance code
which came into effect this month.
    The broader Topix rose 0.9 percent to 14,721.18 and
the JPX-Nikkei Index 400 also advanced 14,722.84.

 (Editing by Kim Coghill)