Japan Nikkei recovers on hopes for BOJ's ETF buying

The Japan share market finished session slightly higher on Tuesday, 17 March 2020, snapping four-day losing streaks, as investors chased for bottom fishing on the back of reportedly buying by the Bank of Japan and public pension funds. However, market gains were marginal, as lockdowns in Europe and the United States to combat the spread of the coronavirus fanned fears of further economic pain from the epidemic that has battered global financial markets. All but two of the 33 sector sub-indexes on the Tokyo Stock Exchange traded higher, with paper and pulp, electricity and gas and fish and forestry being notable gainers. At closing bell, the 225-issue Nikkei Stock Average rose 9.49 points, or 0.06%, to 17,011.53. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 32.12 points, or 2.6%, at 1,268.46.

Investors watched the rapidly evolving situation surrounding the global coronavirus outbreak, which has infected more than 168,000 across the world and taken at least 6,610 lives, according to the World Health Organization. Fears over the economic impact of the virus have triggered strong moves in global markets in recent days.

Drastic measures by the Fed and other Central Banks have failed to appease markets with investors still running towards the exit door of risk assets as governments step up their radical measures to contain the COVID-19 outbreak. The U.S. Federal Reserve announced on Sunday a massive monetary stimulus, in an emergency move. On Monday, several central banks in Asia also announced measures to combat the impact of the coronavirus.

The BOJ pledged on Monday to buy ETFs "aggressively" at an annual pace of up to 12 trillion yen ($113 billion), double the previous amount, until markets stabilise. Market players said the Government Pension Invest Fund (GPIF) and other public pension funds could also have bought stocks to rebalance portfolios following recent sell-offs.

Shares of automakers advanced. Toyota Motor gained 419 yen, or 7.1%, to 6,360 yen and Mazda Motor rose 21 yen, or 3.7%, to 591 yen.

Electric component makers also gained, with Kyocera climbing 225 yen, or 4.1%, to 5,688 yen and Sony up 200 yen, or 3.6%, at 5,833 yen.

Fast Retailing Co slumped 4.8% after the operator of Uniqlo clothing stores said it will temporarily close all 50 Uniqlo outlets in the United States due to the epidemic.

Elsewhere, Japan's top oil and gas company Inpex Corp slid 4.4% after crude oil futures fell below $30 a barrel on Monday.

ECONOMIC NEWS: Japan Industrial Output Rises 1% On Month In January--Japan industrial production rose a seasonally adjusted 1% month-on-month in January, data from the Ministry of Economy, Trade and Industry showed on Tuesday. On a monthly basis, shipments rose 0.6% in January and inventories decreased 1.6%. The inventory ratio gained 1.6%. On a yearly basis, industrial production declined 2.3% in January.

CURRENCY NEWS: The Japanese yen, often seen as a save-haven in times of economic uncertainty, traded at 106.74 per dollar after seeing an earlier high of 105.85

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