23.01.202600:44:49UTC+00Japanese Shares Edge Higher Ahead of BOJ

The Nikkei 225 Index increased by 0.2% to approximately 53,790, and the broader Topix Index similarly advanced by 0.2% to 3,624 on Friday. This marks an ongoing upward trend from the previous session as investors eagerly awaited the Bank of Japan's latest monetary policy announcement. The central bank is anticipated to maintain interest rates at 0.75%, following a 12 basis-point increase in December. This decision comes as policymakers deliberate over sustained inflation rates, the depreciation of the yen, and burgeoning fiscal challenges linked to Prime Minister Sanae Takaichi’s expansive spending strategies. In December, Japan saw its headline inflation rate decrease to 2.1%, the lowest since March 2022. Among notable gainers were Advantest, which rose by 0.7%, Nintendo by 3.3%, JX Advanced by 3.4%, Mitsubishi Heavy Industries by 1.2%, and Toyota Motor by 0.8%. Further bolstering local stocks was the positive performance of Wall Street, fueled by US President Donald Trump’s decision to rescind proposed tariffs on European nations. This shift followed a framework agreement reportedly secured with NATO concerning future dealings related to Greenland.