Nikkei hits 7-year high

<p>Japan’s stocks remained steady after Moody’s downgrade.</p>

Japan's Nikkei ended on a seven-year high today (December 2nd) as investor sentiment was lifted by a weaker yen and rumours that the Bank of Japan (BoJ) could be buying stocks.

Some traders speculated that the central bank could place buying in exchange traded funds (ETFs) today as a part of its asset purchase scheme.

"Some people are hoping for the BoJ’s buying. In addition, there is a talk of buying by major domestic investors," said a trader at a Japanese brokerage firm quoted by Reuters.

The benchmark Nikkei 225 closed up 0.4 per cent at 17,663.22 points, while the broader Topix  rose 0.3 per cent. Earlier, the index had fallen after Moody's Investment Service cut Japan's credit rating by one notch to A1 from Aa3.

It cited heightened uncertainty over Japan’s ability to cut its fiscal deficit after Mr. Abe decided last month to delay an increase in the national sales tax scheduled to take effect next year.

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