Japan’s Nikkei share average turned positive in afternoon trade on Tuesday, edging near seven-year high hit the previous day on hopes of buying by the Bank of Japan.
Some traders speculate that the BoJ could place buying in exchange traded funds (ETFs) on Tuesday as a part of its asset purchase scheme. The BoJ had said on Monday it was ready to buy ETFs tied to JPX-Nikkei Index 400 from Tuesday onwards.
“Some people are hoping for the BoJ’s buying. In addition, there is a talk of buying by major domestic investors,’’ said a trader at a Japanese brokerage firm.
The Nikkei rose 0.3 per cent to 17,636.25, erasing early losses to edge near the seven-year high of 17,649.02 hit on Monday on the fall in the yen and oil prices.
The market fell earlier after Moody’s Investors Service cut Japan’s sovereign debt rating on Monday. Exporter shares were firm with Denso rising 2.4 per cent and Toyota Motor Co gaining 1 per cent.
The broader Topix and the JPX-Nikkei Index 400 rose 0.3 per cent.