By Kevin Buckland
TOKYO, March 9 (Reuters) - Japan's Nikkei share average
jumped to a 6-1/2-month high on Thursday, on course to extend
its winning streak to five days, as a less hawkish Federal
Reserve outlook and expectations for no imminent change to Bank
of Japan stimulus buoyed sentiment.
Gains overnight for U.S. tech shares lifted Japanese peers,
while the yen's decline to a multi-month low provided broader
support.
Real estate and financial shares, which usually move in
opposite directions based on changes in bond yields, jointly
paced gains on the Nikkei as investors favoured high
dividend-yield stocks before the end of Japan's fiscal year this
month.
The Nikkei ended the morning session up 0.56% at
28,604.56 after earlier scaling 28,734.79 for the first time
since Aug. 26.
Ahead of big risk events on Friday, including crucial
non-farm payrolls figures in the United States and BOJ Governor
Haruhiko Kuroda's last policy decision before retirement, some
investors were keen to start locking in profits.
But the rally was still broad, with 188 of the Nikkei's 225
components rising, while 28 fell and nine were flat.
The Topix gained 0.94% to 2,070.43, entering the
lunch break close to the day's high of 2,071.60, the strongest
since September 2021.
On his second day of testimony to Congress, Fed Chair Jerome
Powell reaffirmed his message from Tuesday of higher interest
rates at a potentially faster pace, but stressed that a policy
decision later this month would hinge on economic data.
"Powell's main scenario is still for a 25 basis-point hike,
so he wanted to send a warning to the market - that's my
interpretation," said Kenji Abe, an equity strategist at Daiwa
Securities.
Meanwhile, "there's not much rationale to justify BOJ action
this week," with inflationary pressures still relatively subdued
and the timing sensitive just before the end of the fiscal year,
Abe said.
Lender Resona Holdings was the top gainer on the
Nikkei, up 3.41%. Chipmaking equipment giant Tokyo Electron was the index's biggest support, contributing 17 points
with a 1.04% rise.
(Reporting by Kevin Buckland; Editing by Subhranshu Sahu)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.