FX.co ★ Japanese Shares Rise Ahead of BOJ Policy Decision

On Wednesday, the Nikkei 225 advanced by 0.6%, breaching the 38,000 mark, while the broader Topix Index increased by 0.8% to reach 2,805. This progression reinforces the recent upward trend as investors eagerly anticipate the Bank of Japan's forthcoming monetary policy decision. It is broadly anticipated that the central bank will maintain interest rates at 0.5% amidst prevailing global economic and trade uncertainties. According to the monthly Reuters Tankan survey, sentiment among Japanese manufacturers turned pessimistic in March, stemming from worries over U.S. tariff policies and China's economic sluggishness. In contrast, data indicated that Japan’s trade balance shifted to a surplus in February, propelled by robust export activity. Leading this rally were key index players, showcasing significant gains: Mitsubishi Heavy surged by 2.5%, IHI Corp saw an increase of 2.8%, Mitsubishi Corp rose by 3%, Toyota Motor climbed 2.7%, and Recruit Holdings advanced by 3.1%.