FX.co ★ Japanese Shares Gain Ahead of BOJ Decision

The Nikkei 225 Index rose 0.9% to above 64,600 on Friday, advancing for a third consecutive session as investors positioned ahead of the Bank of Japan’s latest policy decision, where a rate hike is widely anticipated. Markets are also seeking signals on the likelihood of additional tightening as policymakers confront persistent inflation and wage growth, alongside pressure from US Treasury Secretary Scott Bessent.

Japan’s annual inflation rate remained unchanged at 1.9% in August, while core inflation stayed below the BOJ’s 2% target for the seventh straight month at 1.7%.

Technology and AI-related shares led the market higher, mirroring overnight gains on Wall Street as worries about AI development safety risks receded. Standout performers included Kioxia (up 3.2%), SoftBank Group (4.1%), Advantest (4%), Lasertec (5.5%), and Ibiden Co (3.3%).