FX.co ★ Japanese Shares Rise Ahead of BOJ Decision

On Friday, the Nikkei 225 Index climbed by 0.8%, exceeding 49,400, while the broader Topix Index increased by 0.5%, reaching 3,375. This upturn reversed the losses from the previous day as investors adjusted their positions ahead of the Bank of Japan's upcoming policy decision. It is widely anticipated that the central bank will increase its policy rate by 25 basis points to 0.75% to address inflationary pressures. Japan's headline inflation marginally decreased to 2.9% in November from October's 3%, yet it remains above the Bank of Japan's target for the 44th continuous month. Core inflation remained stable at 3% over the same period. Japanese equities found additional support from gains on Wall Street, where softer-than-expected US inflation figures have raised expectations for further interest rate reductions by the Federal Reserve next year. The gains in the Japanese market were widespread, with the standout performers including SoftBank Group, which rose by 1.6%, Fujikura at 2.9%, Advantest with a 1.4% increase, and both Toyota Motor and Disco Corp, each advancing by 1.6%.