Japanese stocks fell, after the Topix index posted a 7 percent two-day rally, as the yen rebounded. SoftBank Corp. slumped after forecasting lower profit.
The Topix slid 0.2 percent to 1,365.52 as of 9:05 a.m. in Tokyo after reaching its highest close since June 2008 yesterday. The Nikkei 225 Stock Average slipped 0.3 percent to 16,809.27, while SoftBank tumbled 3.8 percent. Japanese shares soared in the past two trading sessions after the Bank of Japan expanded stimulus and the Government Pension Investment Fund said it will buy more shares.
The BOJ said on Oct. 31 it raised its target for annual purchases of Japanese government bonds to 80 trillion yen ($706 billion), while tripling buying of real estate investment trusts. On the same day, the pension fund set allocation targets of 25 percent each for Japanese and overseas equities, up from 12 percent each. GPIF will cut domestic bonds to 35 percent of assets from 60 percent.