The Nikkei 225 Index fell 0.6% to below 60,200 on Tuesday, pulling back from recent record highs as investors turned cautious ahead of the Bank of Japan’s latest policy meeting. The central bank is widely expected to leave its benchmark interest rate unchanged, as policymakers weigh persistent inflationary pressures against mounting growth risks stemming from the conflict in the Middle East.
Even so, speculation is growing that BOJ Governor Kazuo Ueda could signal a gradual shift toward policy normalization in the coming months. Market sentiment was further influenced by geopolitical developments after Iran submitted a new proposal to the United States, now under review at the White House, though sharp differences over Tehran’s nuclear program remain a major sticking point.
On the corporate front, Advantest dropped about 5% despite reporting strong earnings. Other notable laggards included SoftBank Group (-5.1%), Hitachi (-6.4%), and Fanuc Corp (-3%).
