Japan's Nikkei slips from record high ahead of BOJ decision

By Junko Fujita

TOKYO, April 28 (Reuters) - Japan's Nikkei share average on Tuesday slipped from a record high reached in the previous session, as investors awaited the Bank of Japan's policy response to the oil shock driven by the U.S.-Israeli war against Iran.

The Nikkei fell 0.6% to 60,174.75, as of 0027 GMT, after closing above the key 60,000 mark for the first time on Monday.

The broader Topix rose 0.28% to 3,745.35.

"Overall market sentiment is not bad, but it is hard to make positions in one way ahead of central bank decisions in Japan and the U.S.," said Takamasa Ikeda, a senior portfolio manager at GCI Asset Management.

"And the market will be closed in Japan in the next session, and more sessions will be closed for the Golden Week holiday," he added. The BOJ is widely expected to hold off raising interest rates on Tuesday, but drop hawkish signals to leave itself scope to push up borrowing costs in the coming months to counter inflationary pressure from the Middle East conflict.

Investors are focusing on the BOJ's quarterly outlook report and comments from Governor Kazuo Ueda for clues on how the protracted Iran war affects its rate-hike path. Among individual stocks, Advantest (ADTTF) fell 5% after the chip-testing equipment maker flagged a 24% gain in its annual net profit for the year to March 2027, in line with the market forecast.

Chip-making equipment maker Tokyo Electron (TOELF) fell 2.65%.

On the other hand, high-flying memory maker Kioxia (KXHCF) jumped 5%.

Bank shares rose, with Mitsubishi UFJ Financial Group (MUFG) and Sumitomo Mitsui Financial Group (SMFG) rising 1.67% and 2.29%, respectively.

Of more than 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 64% rose and 29% fell, and 5% traded flat.

(Reporting by Junko Fujita; Editing by Rashmi Aich)