FX.co ★ Japanese Shares Edge Higher After BOJ Decision

On Tuesday, the Nikkei 225 Index experienced a gain of 0.59%, closing at 38,537, while the broader Topix Index increased by 0.35%, reaching 2,787. This continued the upward trend seen in the previous session, as investors responded to the recent policy announcement from the Bank of Japan. As anticipated, the central bank maintained its policy rate at 0.5% and indicated a more cautious approach to reducing its balance sheet starting next year, signaling a gradual withdrawal of monetary stimulus. Kazuo Ueda, the Governor of the Bank of Japan, highlighted that the central bank is closely observing the economic landscape, particularly in the context of evolving global trade conditions. He also mentioned the possibility of further interest rate hikes if deemed necessary. Additionally, the local market was buoyed by a recovery on Wall Street, with investors largely disregarding rising geopolitical tensions in the Middle East. In Tokyo, the technology sector led the market rally, with standout performances by Advantest (+2.4%), Disco (+6.3%), Lasertec (+4.0%), Tokyo Electron (+2.9%), and SoftBank Group (+2.1%).