Japan Stocks Rally, Yen Sags as BOJ Retains Ultra-Easy Stimulus

TOKYO (Reuters) – Japan’s Nikkei share average rallied and the yen sagged on Tuesday, after the Bank of Japan (BOJ) kept its ultra-loose monetary policy unchanged and offered no hints of an early end to negative interest rates.

The Nikkei climbed 1.41% to end the day at 33,219.39. The broader Topix reversed an early loss of 0.21% to end 0.73% higher. The BOJ’s announcement came during the midday recess.

The yen JPY=EBS weakened as far as 143.78 per dollar following the announcement, and last traded down about 0.5% at 143.50.

“It appears that the BOJ’s stance on carefully assessing the timing for the removal of negative interest rates has not changed,” said Ryutaro Kimura, fixed income strategist at AXA Investment Managers.

“The BOJ still lacks confidence in achieving its price target.”

The BOJ kept its short-term rate…