TOKYO, Sept 25 (Reuters) - Japanese stocks bounced back from two-week low hit earlier in the day as investors bought real estate companies and financial shares on renewed hopes that the Bank of Japan might ease its policy as soon as next month.
Bank of Japan Governor Haruhiko Kuroda met Japanese Prime Minister Shinzo Abe on Friday after data showed Japan’s core consumer prices marked the first annual drop since the BOJ deployed its massive stimulus programme more than two years ago.
Although Kuroda said received no particular requests on monetary policy, the news of their first meeting since June sparked speculation about easing.
The Nikkei rose 1.8 percent to 17,880.51 after having dropped to a two-week low of 17,483.69 earlier in the day. It was still down 1.1 percent on the week.
The Topix rose 1.9 percent to 1,453.81, with turnover hitting the highest level in two weeks and about 10 percent above the average.
Real estate shares rose 4.6 percent, with Mitsui Fudosan rising 6.3 percent. Banks rose 3.6 percent, with Sumitomo Mitsui Trust rising 5.0 percent.
The Tokyo Stock Exchange’s REIT index rose 4.0 percent to a one-month high. (Reporting by Joshua Hunt and Hideyuki Sano; Editing by Simon Cameron-Moore)