FX.co ★ Japanese Shares Trim Gains on Hawkish BOJ

The Nikkei 225 Index rose 0.29% to close at 58,753 on Thursday, while the broader Topix Index advanced 0.97% to 3,880. Both benchmarks notched fresh record highs during the session but later surrendered most of their intraday gains after hawkish signals from the Bank of Japan.

Board member Hajime Takata, widely regarded as the central bank’s most hawkish policymaker, called for additional interest rate increases and for policy communication premised on the assumption that the price stability target is close to being achieved. In addition, Governor Kazuo Ueda reportedly said the BOJ will closely scrutinize economic data at its March and April meetings before deciding on any potential rate moves, keeping the prospect of a near-term hike in play.

On the corporate front, notable gainers included Fujikura (+2.4%), Mitsui Kinzoku (+1.3%), and SoftBank Group (+4%). In contrast, major decliners included Advantest (-1.7%), Disco Corp (-1.2%), and Tokyo Electron.