REFILE-Nikkei soars to 7-yr high on GPIF, BOJ euphoria; weak yen boosts exporters

lunes 3 de noviembre de 2014 23:58 GYT

(Refiles to fix typographical error in second paragraph)
    * Nikkei surges to highest level since Oct 2007
    * Financials, real estate shares climb
    * Weak yen boosts exporters
    * Honda shrugs off U.S. regulator probe

    By Thomas Wilson
    TOKYO, Nov 4 (Reuters) - Japanese stocks jumped to a
seven-year peak on Tuesday, as investors lapped up a set of
positive catalysts including an unexpected central bank move to
ease policy further and a reallocation of funds to domestic
stocks by the public pension fund.
    After months of uncertainty about the economic outlook amid
weakening growth following a sales tax hike in April, the Bank
of Japan on Friday shocked markets by committing to ramp up its
already massive stimulus. 
    The move sent the Nikkei benchmark and global stocks
soaring, and hammered the yen in the process.
    Returning from a long weekend, investors picked up from
where they left off, lifting the Nikkei benchmark 3.5
percent to 16,961.73 by 0113 GMT - its highest level since
October 2007. The index surged 4.8 percent on Friday in the
aftermath of the BOJ's jolt.
     Also on Friday, Tokyo confirmed that the Government Pension
Investment Fund would raise domestic stock holdings to 25
percent from the current 12 percent. [ID: nT9N0SN00J]
    The BOJ and GPIF announcements were seen by market players
as fresh gambits in the government's plan to defeat deflation in
Japan. [ID: nL1N0SS05S]
    "It's a sea-change in investment decision making," said
Gavin Parry, managing director of Parry International Trading in
Hong Kong.
    "This is changing the risk-weighting psyche. You can't
ignore a $1.2 trillion fund." 
    Financial shares soared, with Daiwa Securities 
shooting up 12.6 percent and Nomura Holdings Inc 
climbing 7.6 percent.
    Overall, the Tokyo Stock Exchange grouping of securities
shares jumped 8.8 percent.
    The BOJ announced it would triple purchases of real estate
investment trusts, prompting investors to buy shares in related
    Tokyu Fudosan jumped 7.1 percent and Mitsui Fudosan
Co Ltd climbed 5.5 percent.
    Meanwhile, Japan's major exporters received a boost on the
yen's slump.
    The dollar bought 113.61 yen at 0020 GMT, close to a
seven-year peak of 114.21 reached overnight and not far from the
December 2007 peak of 114.66.
    Honda jumped 4.7 percent, shrugging off news of an
impending probe by U.S. regulators into whether the firm failed
to report deaths or injuries involving air bags now part of a
sweeping federal review. [ID: nL1N0ST2QP]
    Panasonic surged 7.0 percent, Toyota Motor Co
 advanced 4.2 percent and Canon added 3.2
    The broader Topix jumped 3.2 percent to 1,375.88,
while the JPX-Nikkei Index 400 also gained 3.3
percent to 12,572.04.   

 (Reporting by Thomas Wilson; Editing by Shri Navaratnam)