July 31, 2018 / 4:46 AM / 9 months ago

Nikkei bounces back after BOJ's policy tweaks

FILE PHOTO: A Japanese flag flutters atop the Bank of Japan building in Tokyo, Japan, September 21, 2016. REUTERS/Toru Hanai/File Photo

TOKYO (Reuters) - Japan’s benchmark Nikkei share average bounced back from one-week lows on Tuesday, after the Bank of Japan announced tweaks to its monetary policy settings but refrained from making any radical move off its easy policy stance.

In early afternoon trade, the Nikkei average .N225 rose 0.3 percent to 22,599.79 after earlier hitting its lowest level in a week.

The BOJ pledged to keep interest rates “very low” for the time being and took measures to make its massive stimulus programme more flexible, reflecting its forecast that it would take time for inflation to hit its 2 percent target.

Shares in interest rate-sensitive sectors underperformed, with banks .IBNKS.T and Real estate .IRLTY.T sector indices dropping 0.3 percent and 0.6 percent, respectively.

The broader Topix .TOPX fell 0.4 percent to 1,761.13, while the JPX-Nikkei Index 400 .JPXNK400 was down 0.3 percent at 15,566.90.

Market players were seen focusing on Governor Haruhiko Kuroda’s post-meeting news conference due at 0630 GMT Tuesday for more clues on the central bank’s stance.

Reporting by Tomo Uetake; Editing by Sam Holmes & Shri Navaratnam

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