FX.co ★ Nikkei Slides Amid BoJ Hike Speculation

On Monday, the Nikkei 225 declined by 1.89% to settle at 49,303, while the broader Topix Index decreased by 1.19% to finish at 3,338. This downturn halted a four-session winning streak and stemmed from mounting speculation regarding an impending rate hike by the Bank of Japan. Investor sentiment weakened as government bond yields rose and the yen appreciated, signaling expectations of a potential policy tightening in December. This conjecture follows remarks from BOJ Governor Kazuo Ueda, who announced that the bank would evaluate the benefits and drawbacks of increasing rates at its upcoming meeting. Nearly every sector experienced losses, with electronics being notably affected. Among the significant decliners were Tokyo Electric Power (-9.7%), Fujikura (-8.9%), Mitsui Kinzoku (-6.8%), Sumitomo Pharma (-5.9%), and Ebara Corp (-4.9%).