Nikkei closes lower ahead of BoJ decision

Japan’s Nikkei index ended trading on Monday with a decline as investors remained cautious as they awaited indications from Central Bank of Japan Governor Kazuo Ueda regarding a possible change in ultra-loose monetary policy.

The Nikkei fell 0.64 percent to close at 32,758.98 points, and the broader Topix index fell 0.66 percent to 2,316.86 points.

The Japanese central bank is holding a two-day policy meeting that ends on Tuesday. Market traders are awaiting any statements from Ueda regarding the timing of introducing any changes to monetary policy, although the prevailing opinion indicates that the central bank will keep its policy unchanged at this meeting.

The market witnessed sharp movements last week after statements made by Ueda, which reinforced speculation that the central bank would announce an end to negative interest rates as early as this month.

The shares of Fast Retailing, which owns the Uniqlo brand, fell 1.18 percent, putting the greatest pressure on the Nikkei. Employment agency Recruit Holdings shares also fell 3.42 percent.

But shipping companies jumped 5.61 percent. One of the participants in the transactions said that this increase came amid speculation that shipping fees would be raised after two major shipping companies, including MSC, said that they would avoid crossing the Suez Canal in light of the Houthi movement in Yemen intensifying its attacks on commercial ships in the Red Sea.

But the rise was limited to four sectors out of 33 sub-sectors on the Tokyo Stock Exchange. Of the 225 stocks on the Nikkei, 45 rose, 179 fell, and one stock stabilized.