Japan’s Nikkei records its biggest weekly gain in two months

On Friday, the Japanese Nikkei index recorded its biggest weekly jump in more than two months, with the index recouping all its losses since the Bank of Japan’s sudden adjustment to one of its policies last month, but caution about local earnings limited gains.

The Nikkei index rose 0.07 percent to end the session at 27,382.56 points, after trading in negative territory. The index recorded a weekly gain of 3.12%, the largest since the week ending November 11.

The sudden policy adjustment made by the Bank of Japan on December 20 to widen the trading band for the 10-year government bond yield pushed the index lower.

The Nikkei index rose 4.94 percent this month, and has been on an upward trend since the Bank of Japan kept its monetary easing policy unchanged at its meeting last week.

Investors were disappointed by engine company Nidec after it cut its full-year operating profit forecast by nearly half, sending the stock down 7 percent in the following session.

But in Friday’s session, Nydic shares jumped 3.05% and recorded a weekly gain of 2.43%.

Toyota Motor also rose 0.4% after it was announced that Akio Toyoda would step down from the post of president and chief executive officer to become chairman of the board as of April 1, and hand over the helm of Japan’s largest automaker to chief brand officer Koji Sato.

The broader Topix index rose 0.22 percent to 1,982.66 points, recording a weekly gain of 2.9 percent.

The banking sector recorded gains of 2.51 percent, becoming the biggest gainer among 33 sub-indicators, while the shipping sector declined 3.62 percent, becoming the worst performer.