FX.co ★ Japanese Shares Slip on BOJ Jitters

On Friday, the Nikkei 225 decreased by 0.32% to 53,936, and the Topix index fell by 0.28% to 3,659, continuing the downward trend from the previous session. Investors remained cautious in anticipation of the Bank of Japan's upcoming policy meeting next week. It is widely anticipated that the BOJ will maintain its current policy, with the next interest rate increase expected in June. Additionally, political uncertainty influenced market sentiment as Prime Minister Sanae Takaichi is set to announce plans on January 19 regarding a potential dissolution of the lower house. The yen's appreciation, driven by concerns of market intervention, added pressure to stocks heavily reliant on exports. Among the prominent decliners, Tokyo Electron and SoftBank Group each fell by 1%, Mitsubishi Heavy Industries declined by 2.8%, Hitachi decreased by 2.9%, and Toyota Motor dropped by 1.2%. Nevertheless, despite the recent slide, the Nikkei and Topix indices recorded weekly gains of 3.84% and 4.11%, respectively.