Nikkei soars after surprise BOJ easing but banks tumble
* Nikkei climbs but volatile after BOJ policy easing surprise
* Bank shares hammered on negative rate policy
* Exporters gain ground due to a weaker yen
By Ayai Tomisawa
TOKYO, Jan 29 (Reuters) - Japan's Nikkei share average rose more than 3 percent in volatile trade on Friday after the Bank Of Japan unexpectedly eased monetary policy further by introducing a negative interest rate policy.
The Nikkei rose to 17,559.76 points by midafternoon after diping into negative territory at one point as investors digested side effects from the new policy on the banking sector.
The BOJ said it was adopting an interest rate of -0.1 percent, adding that it would charge interest for excess reserves financial institutions park with the central bank. The BOJ said it will cut interest rates further into negative territory if judged necessary.
Bank shares were hammered, with Mitsubishi UFJ Financial Group falling 4.3 percent, Sumitomo Mitsui Financial Group dropping 3.0 percent, and Japan Post Bank diving 5.9 percent.
BOJ Governor Haruhiko Kuroda had said as recently as last week that the bank was not thinking of adopting a negative interest rate policy for now. Continuación...