FX.co ★ Japanese Shares Gain After BOJ Rate Hold

Nikkei 225 Index experienced a modest increase of 0.29%, closing at 53,847, while the Topix Index observed a gain of 0.37%, ending at 3,613. This upward momentum continued from the previous session, following the Bank of Japan's decision to maintain its policy rate at 0.75%, a move anticipated by market participants. The central bank has indicated that it may consider raising rates if the economy and inflation align with its forecasts. Moreover, Governor Kazuo Ueda highlighted the institution's vigilance in assessing the yen's depreciation's impact on inflation levels. This monetary stance unfolds amidst Japan's anticipation of an unexpected election, which might lead to heightened fiscal spending under the leadership of Prime Minister Sanae Takaichi. Among the significant gainers were Advantest, increasing by 3%, Nintendo by 4.5%, JX Advanced by 3.1%, Mitsubishi UFJ by 0.6%, and Toyota Motor by 1.1%. Japanese equities also enjoyed a boost from the upward trend in Wall Street, motivated by U.S. President Donald Trump's decision to retract proposed tariffs on European countries, following a mutual understanding with NATO concerning a prospective Greenland agreement.