Nikkei Rises 0.2% as Gaming, Pharma Gain

The shift in leadership mattered for investors because it showed money moving toward lagging domestic sectors even as the market stayed cautious ahead of the Bank of Japan’s policy decision on Friday. The central bank is widely expected to raise rates by 25 basis points, adding another macro event for traders to digest after the U.S. Federal Reserve lifted its benchmark rate by 25 basis points and kept the door open to another move this year.

Chip stocks, which have driven much of the Nikkei’s recent swings, were a drag. Advantest fell 1.9% and Tokyo Electron lost 2.2%, while SoftBank Group gained 1% on continued appetite for AI-linked names and cable maker Fujikura rose 0.6%.

Gaming and pharma were the standout rotation trades. Nintendo climbed 3.8%, Konami Group rose 3.7% and Sumitomo Pharma jumped 4.5%, suggesting investors were seeking sectors with more defensive earnings profiles after a run of underperformance.

Oil stocks tracked the crude slide, with Inpex down 3.3%. The trading pattern leaves the Nikkei exposed to the next policy signal from the BOJ, while crude, U.S. rates and any renewed tension in the Middle East remain the key catalysts for sector rotation.