The Nikkei Index Declines on The BOJ’s ETF purchasing plan, Topix at a 30-Year High

Japan’s benchmark Nikkei index fell, while the Topix index reached its highest level in 30 years, as the Bank of Japan (BOJ) said it would only buy into index funds linked to Topix after a review of its policy framework.

The Nikkei index closed down by 1.41% to 29,792.05 points, while the broader Topix index rose 0.18% to 2012.21, its highest level since 1991.

The Nikkei decline accelerated after BOJ said it would only buy into index funds linked to the Topix index. It also said it would buy up to 12 trillion yen ($ 110.21 billion) at most.

Nikkei heavyweight fell, as Fast Retailing, which runs Uniqlo clothing stores, slipped 6.1%, and Softbank, a start-up investment group, lost 2.46%.

Technology stocks also declined, as Tokyo Electron fell 2.59% and Fanuc shares fell 2.93%.

The maritime transport sector progressed. Nippon Yusen jumped 4.24%, Mitsui OSK Lines rose 2.77% and Kawasaki Kesen gained 2.74%.

Shares of Japan’s three largest banks rose amid the surge in interest rates, with Mizuho Financial adding 1.39%, Sumitomo Mitsui Financial Including 1.95% and Mitsubishi UFJ Financial Group increasing 1.92%.

Fast Retailing was the biggest percentage loser on the Nikkei index, followed by Kikoman, which fell 3.98%, and Konami Holdings, which fell 3.66%.