(Adds analyst comment in 5th paragraph, additional details
throughout)
By Kevin Buckland
TOKYO, April 28 (Reuters) - Japan's Nikkei share average
rose on Friday after the Bank of Japan left its ultra-easy
monetary policy settings unchanged, adding to the boost from a
series of strong domestic earnings and solid gains on Wall
Street overnight.
However, banks were a casualty of the BOJ's decision,
flipping from gains of as much as 2.64% in the morning session
to be down as much as 2.41%.
As widely expected, the BOJ kept its short-term interest
rate target intact at -0.1% and for the 10-year bond yield
around 0%, vowing to "patiently" continue with stimulus.
It announced a "broad-perspective" review of its monetary
policy, but lasting as long as 1-1/2 years, indicating no rush
to normalize settings.
"The main message is that, of course, the BOJ will consider
a change in monetary policy, but it will take a longer time,"
said Masayuki Kichikawa, chief macro strategist at Sumitomo
Mitsui Asset Management.
"That has created some volatility in financial markets."
New BOJ Governor Kazuo Ueda and his board kept investors on
tenterhooks for much longer than recent meetings under
predecessor Haruhiko Kuroda, announcing the policy decision
about half an hour into the afternoon session.
The Nikkei pushed up a bit, took a breath, and then leapt to
a fresh intraday high at 28,786.07, before then retreating
slightly to be 0.9% higher on the day at 28,715.03.
The banking index was the worst performer among
the Tokyo Stock Exchange's 33 industry groups, last down 1.06%
on the idea that low rates will continue to crush lending
profits for the foreseeable future.
Advancers far exceeded decliners on the Nikkei though, with
188 of the 225 components rising, 33 falling and four flat.
The standout winners were the result of strong earnings,
with shipbuilder Mitsui E&S Co Ltd soaring 14.51%,
sauce maker Kikkoman Corp advancing 10.72% and Kansai
Electric Power Co Inc jumping 10.59%.
(Reporting by Kevin Buckland; Editing by Varun H K)
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