The Nikkei 225 fell 0.32% to 53,936 while the Topix slipped 0.28% to 3,659 on Friday, extending losses from the previous session as investors stayed cautious ahead of the Bank of Japan’s policy meeting next week. The BOJ is widely expected to keep policy unchanged, with markets pricing in the next rate hike around June. Political uncertainty also weighed on sentiment, as Prime Minister Sanae Takaichi is expected to outline plans on Jan. 19 for a possible dissolution of the lower house. Additionally, the yen strengthened on intervention concerns, pressuring export heavy stocks. Among major decliners, Tokyo Electron and SoftBank Group each fell 1%, Mitsubishi Heavy Industries dropped 2.8%, Hitachi slid 2.9% and Toyota Motor lost 1.2%. Despite the pullback, the Nikkei and Topix gained 3.84% and 4.11%, respectively, for the week.
