The Nikkei 225 Index rose 0.59% to close at 38,537 while the broader Topix Index climbed 0.35% to 2,787 on Tuesday, extending gains from the previous session as investors reacted to the Bank of Japan’s latest policy decision. As expected, the central bank kept its policy rate steady at 0.5% and signaled a more gradual approach to balance sheet reduction starting next year, reflecting a cautious path toward stimulus withdrawal.
BOJ Governor Kazuo Ueda emphasized that policymakers are closely monitoring economic conditions, particularly amid shifting global trade dynamics, and left the door open for further rate hikes if warranted. The local market also found support from an overnight rebound on Wall Street, where investors largely looked past rising geopolitical tensions in the Middle East. In Tokyo, technology shares led the rally, with strong performances from Advantest (+2.4%), Disco (+6.3%), Lasertec (+4.0%), Tokyo Electron (+2.9%), and SoftBank Group (+2.1%).
