Japanese Shares Gain Ahead of BOJ Decision

The Nikkei 225 Index climbed 0.9% to above 64,600 on Friday, rising for the third straight session as investors braced for the latest Bank of Japan policy decision, where it is widely expected to raise interest rates. Investors will also look for guidance on the possibility of further tightening as policymakers grapple with elevated inflation and wage growth, along with pressure from US Treasury Secretary Scott Bessent. Meanwhile, Japan’s annual inflation rate held steady at 1.9% in August, while core inflation stayed below the BOJ’s 2% target for a seventh straight month at 1.7%. Technology and AI-related stocks led the gains following similar advances on Wall Street overnight, as concerns over AI development safety risks eased. Notable performers included Kioxia (3.2%), SoftBank Group (4.1%), Advantest (4%), Lasertec (5.5%), and Ibiden Co (3.3%).