Nikkei 225 slipped 1%, the broader TOPIX index shed 0.3%, Shanghai Shenzhen CSI 300 gained 0.3%, Hang Seng added 0.2%, S&P/ASX 200 climbed 0.7%, KOSPI declined 0.5%, while Nifty 50 edged 0.2% lower

Asian stock markets remained mixed on Friday, while Nikkei reversed early gains after the Bank of Japan held interest rates steady but said it would sell its holdings in ETFs and REITs.

The Bank of Japan (BOJ) left its short-term interest rate unchanged at 0.5% on Friday and announced it will begin selling its holdings of ETFs (exchange-traded funds) and REITs, a shift that kicked off concerns among investors.

Financial markets had anticipated the BOJ’s decision to hold rates steady, given slowing exports and global uncertainties, even as policymakers monitor wage growth and the persistence of price pressures.

However, Nikkei 225 reversed early gains, slipping 1% after jumping nearly the same amount to a new record high of 45,852.75 points earlier in the session.

This was because the BOJ has been a reliable large-scale buyer of ETFs, effectively providing sustained demand support under major indices.

Investors noted that two BOJ board members dissented from the decision to maintain rates, a signal of rising hawkish tilt.

The broader TOPIX index shed 0.3% after rising to a new record high of 3,187.98 points earlier in the session.

Blue chip Shanghai Shenzhen CSI 300 gained 0.3%, while the Shanghai Composite index traded marginally lower, after losses in the previous session.

Hong Kong-listed Semiconductor Manufacturing International Corp, and Hua Hong Semiconductor were among the top gainers.

Hang Seng added 0.2%.

S&P/ASX 200 climbed 0.7%, while KOSPI declined 0.5% after hitting a record high of 3,467.89 points earlier in the session.

Straits Times Index was largely steady, while Nifty 50 edged 0.2% lower at market open.