(Updates with closing levels)
By Kevin Buckland
TOKYO, April 28 (Reuters) - Japan's Nikkei share average
rose to an eight-month high 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.
The Nikkei surged as high as 28,879.24 for the first
time since Aug. 19, and closed near that level at 28,856.44, a
gain of 1.4%.
The broader Topix ended 1.23% higher at 2,057.48,
the strongest level since March 9.
The yen slumped as much as 0.83% to just past 135 per dollar , giving support to Japanese exporters' shares,
particularly automakers.
Bank stocks, though, were a casualty of the BOJ decision,
flipping from gains of as much as 2.64% in the morning to losses
as steep as 2.41% on the idea that low rates will continue to
crush lending profits for the foreseeable future.
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."
The banking index was the worst performer among
the Tokyo Stock Exchange's 33 industry groups, although losses
had eased greatly to just 0.28% by the close.
Transport equipment makers rallied 2.19%.
Advancers far exceeded decliners on the Nikkei, with 205 of
the 225 components rising versus 20 that fell.
The standout winners were the result of strong earnings,
with shipbuilder Mitsui E&S Co Ltd soaring 15.85%,
sauce maker Kikkoman Corp jumping 11.84% and Kansai
Electric Power Co Inc advancing 9.62%.
(Reporting by Kevin Buckland; Editing by Varun H K and Sohini
Goswami)
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