Nikkei Slips Ahead of BoJ Decision
The Nikkei 225 index closed down around 1.3% at around 50,100 on Monday (December 15th), dragged down by negative sentiment from Wall Street, which just recorded its worst daily decline in three weeks, particularly in technology and AI stocks. Investors were also still digesting weak Chinese data, including declining investment and sluggish consumption, which has resurfaced concerns about global demand and pressured shares of Japanese exporters.
Domestically, the Japanese stock market was also pressured by expectations of a Bank of Japan (BoJ) interest rate hike at its December 18-19 meeting, after the Tankan survey showed manufacturing business sentiment hitting a four-year high and inflation expected to remain above the 2% target. While this data supports the BoJ's policy normalization, it also raises investor concerns about rising borrowing costs and a strengthening yen, potentially weighing on the profits of major companies listed on the Nikkei. (az)
Source: Newsmaker.id
