Nikkei Stumbles, Tech & Brokers Weigh
The Nikkei index opened 0.1% lower at 51,265.52 on Wednesday morning, dragged down by technology and brokerage stocks. SoftBank Group (-1.8%) and Nomura Holdings (-2.1%) earlier in the session. In the forex market, USD/JPY was at 152.78, higher than yesterday's close of 152.28—adding to market caution ahead of the Bank of Japan's (BoJ) policy decision this afternoon.
Investors await the outcome of Thursday's BoJ meeting, with a focus on the direction of interest rates and signals of forward guidance. So far, polls and market coverage suggest the BoJ is leaning toward holding rates while reaffirming its commitment to managing the yen's weakness to prevent broader inflation.
The market is also closely monitoring Prime Minister Sanae Takaichi's policy moves, particularly potential fiscal stimulus and its implications for inflation and the BoJ's interest rate direction. Any new government guidance could alter market expectations—for both the yen and domestic stocks.
Going forward, the Nikkei's direction will be largely determined by the tone of the BoJ's statement and subsequent press conference. A more hawkish signal could weigh on equity sentiment, while a cautious tone could potentially ease short-term volatility. On the corporate side, the performance of technology and brokerage sector stocks remains the main determinant of the Japanese index's movement today. (asd)
Source: Newsmaker.id
