FX.co ★ Japanese Shares Fall After BOJ Decision

On Friday, the Nikkei 225 Index fell by 0.57% to finish at 45,046, while the broader Topix Index saw a decline of 0.35%, ending at 3,148. These drops came despite initial gains and followed the decision by the Bank of Japan to maintain its policy rate at 0.5% for the fifth consecutive meeting, a move that was largely anticipated by analysts. The central bank noted a moderate economic recovery but emphasized certain vulnerabilities and cautioned about risks associated with global trade policies. In a unanimous vote, the bank also announced plans to begin divesting its holdings in ETFs and J-REITs. Concurrent economic data indicated that Japan's core inflation rate eased for the third consecutive month, reaching 2.7% in August, its lowest point since November 2024. Notable stock losers included Nintendo, which fell 2.4%, Fast Retailing, which decreased by 4.5%, and Hitachi, down by 2.4%. Despite Friday's setback, the Nikkei showed a weekly gain of 0.62%, whereas the Topix experienced a slight weekly decline of 0.41%.