Nikkei dips as investors await BOJ policy decision

The Nikkei 225 Index slipped 0.03% to close at 39,457.

Nikkei dips as investors await BOJ policy decision

The broader Topix Index dropped 0.3% to 2,738 on Monday, extending losses from the previous session as investors focused on the upcoming Bank of Japan policy decision. When the decision is made on Thursday, market sentiment remains split on whether the central bank will raise interest rates again or keep its current stance. However, BOJ officials indicated last week that more time is needed to assess the latest economic data. Meanwhile, Japan's core machinery orders in October exceeded expectations, pointing to a positive outlook for capital spending.

Manufacturing and services improve, but major stocks fall

Additionally, manufacturing and services activity showed signs of improvement in December. Among individual stocks, major losses were seen in index heavyweights like Tokyo Electron (-0.9%), Kawasaki Heavy (-0.8%), and Tokio Marine (-2.3%).