BOJ Decision Looms as Nikkei 225 Jumps Ahead of Rate Hike
The Tokyo Stock Exchange saw gains on Friday as investors prepared for the Bank of Japan's interest rate decision. The Nikkei 225 Index rose 0.9% to above 64,600, marking its third consecutive increase. This comes ahead of the BOJ's policy announcement, where a rate hike is widely expected.
Investors are also seeking guidance on potential further tightening in response to elevated inflation and wage growth. Pressure from US Treasury Secretary Scott Bessent has added to this concern.
Japan's annual inflation rate remained steady at 1.9% in August, while core inflation stayed below the BOJ's 2% target for a seventh consecutive month at 1.7%. Technology and AI-related stocks led the gains, driven by easing concerns over AI development safety risks following similar advances on Wall Street.
Kioxia (3.2%), SoftBank Group (4.1%), Advantest (4%), Lasertec (5.5%), and Ibiden Co (3.3%) were among the notable performers.