28.04.202607:01:06UTC+00Japan’s Nikkei Falls on Hawkish BOJ Hold

The Nikkei 225 Index fell 0.6% to below 60,200 on Tuesday, retreating from recent record highs after the Bank of Japan left its policy rate unchanged at 0.75% for a fourth consecutive meeting, in line with market expectations. The central bank also raised its inflation forecast while trimming its FY2026 growth outlook to account for the economic fallout from the conflict in the Middle East.

Notably, three of the nine policy board members voted for a rate hike, highlighting mounting concern over inflationary pressures associated with the war involving Iran. Geopolitical risks remained in focus after Iran submitted a new proposal to the US, though persistent disagreements over Tehran’s nuclear program continue to pose a major obstacle.

On the corporate front, Advantest slid about 5% despite posting strong earnings. SoftBank Group plunged nearly 10% amid renewed anxiety surrounding the artificial intelligence sector. Other significant decliners included Hitachi (-5.8%), Tokyo Electron (-4.1%), and Fanuc Corp (-4.1%).