Japan's Nikkei hits 8-month high crossing 29,000 on weak yen boost

By Kevin Buckland

TOKYO, May 1 (Reuters) - Japan's Nikkei share average hit a more than eight-month high on Monday, topping the key psychological 29,000 level after the Bank of Japan's (BOJ) continued dovish stance pushed the yen to a nearly two-month low.

Rail and airlines were the best performing of the Tokyo Stock Exchange's 33 industry sectors on the potential boon for tourism, while exporters including automakers rose amid the boost to the value of overseas sales.

Tech services provider NEC surged 14% after strong earnings to be the best performing Nikkei stock by a wide margin.

Sony Group was a standout decliner, dropping 4.17% after forecasting profit to slip from a record high.

The Nikkei gained 0.69% to 29,056.25 as of the midday break, after hitting its highest since Aug. 19 at 29,143.89 earlier. Of the Nikkei's 225 components, 170 rose, 50 fell, while five were unchanged.

The broader Topix added 0.63% to 2,070.43, after touching 2,076.11, its highest since September 2021.

The yen weakened to as low as 136.87 per dollar in Tokyo, extending its decline from Friday, when the BOJ kept stimulus settings unchanged and signalled it was in no hurry to normalize policy.

Japan has a shortened trading week, marking the Golden Week holiday from Wednesday, when the U.S. Federal Reserve sets policy, followed by the European Central Bank on Thursday.

"The Nikkei should stay positive today, however there's only today and tomorrow before Golden Week, and during the holiday there are several big events," Nomura Securities strategist Maki Sawada said.

"It's easy to think there could be some profit-taking emerging."

The TSE's rail index surged 1.78%, followed by a 1.53% jump for airlines. Auto shares gained 0.86%.

Financial stocks also did well, shaking off news of the likely failure of U.S. bank First Republic. The bank index gained 0.92% and the securities index advanced 0.72%.

(Reporting by Kevin Buckland; Editing by Rashmi Aich)