Japan's Nikkei gains first time in a week as BOJ shock eases; Toshiba soars

TOKYO, Dec 22 (Reuters) - Japan's Nikkei index ended

higher on Thursday, for the first time in more than a week, as

investors bought back shares that had been beaten down by the

Bank of Japan's (BOJ) surprise policy tweak earlier this week. Automaker shares rebounded strongly after the yen showed

signs of stabilizing, and the real estate sector rallied as

long-term bond yields also calmed down after steep climbs. Toshiba ended 4.25% higher and was up as much as

7.61% at one point after local media reported that the company's

preferred bidder, Japan Industrial Partners (JIP), is set to

seal a $10.6 billion loan this week. The Nikkei share average ended the day up 0.46% at

26,507.87, after dipping as low as 26,269.80 in the previous

session for the first time since Oct. 13. The last time the benchmark had a winning day was Dec. 14,

as it was buffetted not just by the BOJ's hawkish twist, but by

U.S. recession fears. "The BOJ decision was a massive surprise, but the markets

seem be digesting it bit by bit," said Masahiro Ichikawa, chief

market strategist at Sumitomo Mitsui DS Asset Management. "For the rest of the year, the Nikkei will probably

fluctuate around the current level of about 26,500, but in the

new year, the focus should be back on U.S. inflation and the

economic outlook." The broader Topix gained 0.78% on Thursday to

1,908.17. Real estate was the best-performing Topix sector,

gaining 2.5%. Mitsui Fudosan jumped 4.3% and Sumitomo

Realty rallied 3.6%. The transport equipment sector also stood out,

rising 1.6% as the yen stabilized after a spike to a 4-1/2-month

peak on Tuesday. A stronger yen reduces the value of overseas

revenue. Toyota climbed 1.83% and Nissan rose

2.15%. Nintendo, another big exporter, gained 1.61%.

(Editing by Rashmi Aich and Uttaresh.Vs)