Nikkei declines as investors expect BOJ tightening

Japan’s Nikkei index fell today as investors weighed the potential timing of the Bank of Japan tightening monetary policy further, while stocks linked to chip companies fell after last week’s gains.

The Nikkei fell 0.11% to 38,855.37 points at close, despite a balance between losing and winning stocks, after 120 stocks rose compared to a decline of 101 stocks, and four remained stable.

The broader Topix index fell 0.08%, with an index of shares of fast-growing companies falling 0.37% and value stocks increasing 0.50%.

The Bank of Japan is scheduled to hold its next monetary policy meeting on June 13-14. Investors are concerned that the meeting will end with a tightening of monetary policy after the decline in the Japanese currency made officials, including Governor Kazuo Ueda, take more hawkish positions.

Bank stocks continued to rise in light of the possibility of raising interest rates, which boosted profits from lending and investment activities. The Topix banking index rose 1.47 percent, reaching its highest level since December 2007.

Utility companies also rose, led by Furukawa Electric, which jumped more than nine percent, and Kansai Electric, which increased 5.50%.