FX.co ★ Japanese Shares Edge Higher Ahead of BOJ Decision

On Tuesday, the Nikkei 225 rose by 0.3% to exceed 38,400, while the broader Topix index saw a modest increase of 0.1% to reach 2,780. This upward movement builds on gains from the previous session as investors eagerly await the Bank of Japan's upcoming policy decision. It is broadly anticipated that the central bank will maintain current interest rates, focusing on US trade policy developments and assessing the inflationary effects of climbing oil prices. Japanese stocks also experienced uplift from a recovery in Wall Street, where market participants seemed largely unfazed by intensifying Middle East tensions. Meanwhile, US President Donald Trump called for a complete evacuation from Tehran amidst ongoing Israeli airstrikes, attributing the crisis to Iran's refusal to agree to his proposed nuclear deal. In Tokyo, the rally was predominantly driven by technology stocks, with significant advances from companies such as Advantest (1.2%), Disco (3.1%), Lasertec (3.0%), Tokyo Electron (1.4%), and SoftBank Group (1.3%).