FX.co ★ Japanese Shares Slip Amid Hawkish BOJ Signals

On Tuesday, the Nikkei 225 Index saw a slight decline of 0.06%, settling at 37,447, while the broader Topix Index dropped 0.22%, ending at 2,771. This marks the third consecutive day of losses for Japanese stocks as investors responded to the Bank of Japan's hawkish tone under Governor Kazuo Ueda. Ueda emphasized the central bank’s openness to raising interest rates again should economic and inflation targets be achieved, reinforcing the notion of a gradual shift in monetary policy. He added that Japan is experiencing a moderate economic recovery, bolstered by rising corporate profits and strong business sentiment, although some areas of weakness persist. Market sentiment was additionally dampened by escalating global trade tensions. US President Donald Trump’s latest announcement proposing to double tariffs on steel imports to 50% elicited strong opposition from major trading allies, heightening concerns about potential adverse effects on Japan’s steel and manufacturing industries. Among significant decliners were Sanrio (down 1.3%), Fujikura (down 1.8%), and Mitsubishi UFJ (down 0.7%).