The Nikkei 225 fell 0.4% to below 54,000, while the Topix slipped 0.2% to 3,660, extending losses from the previous session as investors looked ahead to the Bank of Japan’s policy meeting next week for any signals on its rate-hike path. The central bank is widely expected to hold policy steady next week, with markets betting on the next rate hike around June. Political uncertainty also weighed on sentiment, with Prime Minister Sanae Takaichi expected to outline plans on Jan. 19 for a possible dissolution of the lower house. In addition, the yen gained some ground amid fears of possible intervention by Japanese authorities, which pressured the earnings outlook for Japan’s export heavy industries. Among major decliners, Tokyo Electron fell 1.6%, Mitsubishi UFJ dropped 1.2%, Sony Group slid 1.6%, Sanrio lost 2.1% and Hitachi declined 2.1%.