Bank of Japan Held Rates Steady, Jobless Rate Edged Higher In March

Akira Ito
28 Apr, 2026
Tokyo

Japan's indexes declined from record highs, and investors reviewed rate decisions and the latest economic updates. 

As investors modified their expectations for inflation and economic growth, the Nikkei 225 Stock Average fell more than 1%, while the overall Topix increased by 0.7%. 

The Bank of Japan left its short-term rates unrevised at 0.75% for a fourth consecutive meeting in a row, meeting the market expectations. 

The rate-setting committee revised lower its economic growth expectations to 0.5% from 1.0%, reflecting softer domestic economic momentum, and its core inflation outlook to 2.8% from 1.9%, citing higher energy prices. 

The government measures, resilient corporate profits, and accommodative financial conditions are likely to provide support for modest economic growth in the current financial year.

The central bank also boosted its financial year 2025 economic growth estimate to 1.0% from 0.9%, backed by last year's trade deal with the U.S.

Japan's jobless rate edged higher in March as geopolitical uncertainty and weakening consumer sentiment weighed on the broader market. 

The jobless rate increased to 2.7% from 2.6% in February, and the number of unemployed increased by 10,000 to 1.86 million, according to the latest data released by the Ministry of Internal Affairs and Communications. 

Meanwhile, total employment declined by 120,000 to 68.2 million, and the total labor force shrank by 100,000 to a seven-month low of 70.0 million. 

The jobs-to-applicants ratio eased to 1.18 from 1.19 in February as demand for skilled professionals in advanced technology, biotechnology, and pharmaceutical sectors remained high.

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average dropped 1.2% to 59,790.97, and the broader Topix advanced 0.7% to 3,760.51.

Advantest Corp. decreased 5.3% to ¥29,815.0 after the company's outlook missed market expectations. 

Revenue in the financial year ending in March rose 44.7% to 1.1 trillion yen, net income advanced 133% to 375.4 billion yen, and diluted earnings per share jumped to 513.6 yen from 218.01 yen a year ago. 

The company increased its total annual dividend to 59 yen from 39 yen, but the dividend payout ratio fell to 11.5% from 17.8% a year ago, respectively.

The advanced semiconductor equipment maker estimated fiscal 2026 sales to increase at a slower growth rate of 26% to 1.42 trillion yen, net income to rise 24% to 465.5 billion yen, and basic earnings per share to advance to 641.6 yen per share.