Nikkei Slides Amid BoJ Hike Speculation

2025-12-01 07:56 By Chusnul Chotimah 1 min. read

The Nikkei 225 fell 1.89% to close at 49,303, while the broader Topix Index slipped 1.19% to 3,338 on Monday, ending a four-session winning streak amid growing speculation of a Bank of Japan rate hike.

Sentiment weakened as government bond yields climbed and the yen strengthened, reflecting expectations of a December policy tightening after BOJ Governor Kazuo Ueda said the bank will weigh the pros and cons of raising rates at its meeting later this month.

Markets now assign roughly an 80% probability to a rate increase at the December 19 policy meeting, up from about 60% last week.

Nearly all sectors finished lower, led by electronics.

Major decliners included Tokyo Electric Power (-9.7%), Fujikura (-8.9%), Mitsui Kinzoku (-6.8%), Sumitomo Pharma (-5.9%), and Kioxia Holdings (-5.6%).

On the data front, Japan’s manufacturing PMI was revised slightly lower in November, marking the fifth consecutive month of contraction in factory activity, though the softest since August.



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