The Nikkei 225 Index rose 0.2% to around 53,790, while the broader Topix Index also gained 0.2% to 3,624 on Friday, extending gains from the previous session as investors awaited the Bank of Japan’s latest policy decision. The central bank is widely expected to keep rates unchanged at 0.75% following a 12 basis-point hike in December, as policymakers balance persistent inflation, a weakening yen, and growing fiscal concerns tied to Prime Minister Sanae Takaichi’s expansionary spending plans. Meanwhile, Japan’s headline inflation eased to 2.1% in December, marking its lowest level since March 2022. Key performers included Advantest (+0.7%), Nintendo (+3.3%), JX Advanced (+3.4%), Mitsubishi Heavy Industries (+1.2%), and Toyota Motor (+0.8%). Local equities also drew support from Wall Street’s gains, following US President Donald Trump’s reversal on proposed tariffs targeting European countries, with a framework agreement reportedly reached with NATO on a future Greenland-related deal.