Nikkei 225 Falls for Fourth Day as BoJ Rate Hike Odds Rise

The Nikkei 225 Index continued its downward trajectory for the fourth consecutive session, reaching a low of ¥56,355. This retreat comes as market participants weigh the increasing likelihood of a shift in the Bank of Japan's (BoJ) ultra-loose monetary policy. Seiji Adachi, a former senior BoJ official, recently indicated that a rate hike in April is currently the most probable scenario. Adachi cautioned that moving as early as March would be risky, as it would rely on expectations rather than confirmed economic data. These hawkish signals have put pressure on Japanese equities, particularly export-heavy sectors sensitive to currency fluctuations. Investors are now closely monitoring upcoming policy meetings for definitive signs of a structural pivot.