Japan's Nikkei dips on BOJ's ETF purchase plan; Topix at 30-year high

TOKYO, March 19 (Reuters) - Japan's benchmark Nikkei index
fell while the broader Topix hit a 30-year high, as the Bank of
Japan (BOJ) said it would only buy Topix-linked exchange traded
funds after a review of its policy framework.
The Nikkei share average .N225 closed 1.41% lower at
29,792.05, while the broader Topix .TOPX inched up 0.18% to
2,012.21, its highest since 1991.
The Nikkei's fall accelerated after the BOJ said it would
only buy ETFs that are linked to the Topix index. It also said
it would buy up to 12 trillion yen ($110.21 billion) at most,
and slightly broadened a trading band for its 10-year bond yield
target, as widely expected.
"The impact of the BOJ's move on the Nikkei will be
limited," said Shingo Ide, chief equity strategist at NLI
Research Institute. "It will contribute to a healthy correction
in the NT ratio."
The so-called NT ratio .NTIDX of the Nikkei and Topix
dropped to 14.81 from 15.04 on Thursday. It had hit a record
high of 15.68 earlier this month.
Nikkei heavyweights fell, with Uniqlo clothing store
operator Fast Retailing 9983.T shedding 6.1% and start-up
investor SoftBank Group 9984. losing 2.46%.
Blue-chip technology shares also declined, with Tokyo
Electron 8035.T dropping 2.59% and Fanuc 6954.T slipping
2.93%.
The sea transport sector advanced. Nippon Yusen 9101.T
jumped 4.24%, Mitsui OSK Lines 9104.T rose 2.77% and Kawasaki
Kisen 9107.T gained 2.74%.
Japan's top three banks gained amid rising interest rates,
with Mizuho Financial 8411.T adding 1.39%, Sumitomo Mitsui
Financial 8316.T up 1.95% and Mitsubishi UFJ Financial
8306.T climbing 1.92%.
Fast Retailing was the biggest percentage loser in the
Nikkei, followed by Kikkoman 2801.T , losing 3.98%, and Konami
Holdings 9766.T , down by 3.66%.
The top percentage gainers in the index were Fukuoka
Financial Group 8354.T , up 6.36%, followed by Japan Post
Holdings 6178.T , gaining 4.48%, and Honda Motor 7267.T , up
4.45%.
($1 = 108.8800 yen)