The Nikkei 225 Index inched up 0.1% to around 69,400 on Tuesday, while the broader Topix Index slipped 0.1% to 3,995, as Japanese stocks traded without a clear direction ahead of the Bank of Japan’s policy decision. The central bank is widely expected to raise its benchmark interest rate by 25 basis points to 1% in an effort to contain inflation and support the yen.
Market participants also monitored geopolitical developments, amid expectations that the US and Iran will sign a peace agreement in Switzerland on Friday, a move that could pave the way for reopening the Strait of Hormuz.
Technology shares were mostly higher, led by strong advances in Kioxia Holdings (3.5%), Taiyo Yuden (3.3%), and Murata Manufacturing (7.2%). By contrast, financial stocks came under pressure, with notable declines in Mitsubishi UFJ (-1.1%), Sumitomo Mitsui (-1.8%), and Mizuho Financial (-0.4%).
