Nikkei pares gains after BOJ decision disappoints

* Nikkei rises over 3 pct, but pares gains after BOJ decision

* BOJ’s move seen halfhearted at best – analysts

By Elaine Lies

TOKYO, Aug 30 (BestGrowthStock) – Japan’s Nikkei average pared gains
on Monday after rising more than 3 percent at one point, with
investors disappointed by a Bank of Japan decision that contained
no surprises and was seen as lacklustre at best.

At an emergency meeting, the BOJ expanded its fund supply
tool, saving more aggressive steps for when there is clearer
evidence of a slowdown in a fragile economy hit by a strong yen.
[ID:nTOE67S01H] [ID:nTOE67S01V]

But analysts questioned whether the central bank’s action
would do much to help to stem a rise in the Japanese currency
that hurts exports and may delay Japan’s exit from deflation,
noting that most of the steps it took had already been widely
expected.

“This is better than nothing, but still disappointing.
There’s little content in this message,” said Nagayuki Yamagishi,
a strategist at Mitsubishi UFJ Morgan Stanley Securities.

“Certainly there’s some thinking that the BOJ wants to save
its stronger measures for later, but if you look at what the yen
and stock market have been doing lately I wonder if this is
really such a good decision. Things are already tough.”

The Nikkei was up 1.8 percent or 164.07 points to 9,156.17
after earlier rising more then 3 percent or as far as 9,280.70,
roughly 300 points, on short-covering,

The broader Topix (.TOPX: ) rose 1.4 percent to 830.75, also
off earlier highs.

The dollar hit a 15-year low of 83.58 yen last week, when the
benchmark Nikkei (.N225: ) fell to a 16-month low. The greenback
was trading at 85.41 yen (JPY=: ) after the decision.

BOJ Governor Masaaki Shirakawa will hold a news conference at
2:30 p.m. (0530 GMT). [ID:nTOE67S01B] He will also meet with
Prime Minister Naoto Kan in the afternoon.

Shares got their initial upward impetus from gains made by
U.S. stocks (Read more about the stock market today. ) on Friday, when they rose 1.7 percent as strong
buying interest at a key technical level and short-covering
sparked the market’s comeback. [.N]

Also helping was a less gloomy revision for U.S. GDP than
expected. Second-quarter gross domestic product growth was
revised down to 1.6 percent, from 2.4 percent. Many economists
had forecast an even bigger downward revision to 1.4 percent
growth. [ID:nN26193565]

Exporters held onto gains, although they were off earlier
highs.

Canon Inc (7751.T: ) rose 2.4 percent to 3,590 yen and Kyocera
Corp (6971.T: ) climbed 2.6 percent to 7,440 yen. Honda Motor Co
(7267.T: ) advanced 2.2 percent to 2,872 yen.
(Editing by Edwina Gibbs)

Nikkei pares gains after BOJ decision disappoints