Nikkei rises as MSCI review supports sentiment

Foreign investors stay on the sidelines before BOJ meet

Japanese shares bounced off a one-week low on Wednesday supported by news that Japan will retain its status as the only developed market in the region in MSCI stock indexes, checking any potential knee-jerk rotation out of Tokyo equities.

MSCI announced that it was removing South Korea and Taiwan from its review list for reclassification to developed markets.

The Nikkei gained 0.5% to 15,069.48.

The broader Topix added 0.8% to 1,239.07, while the new JPX-Nikkei Index 400 advanced 0.8% to 11,280.65.

Volume was subdued, with only 1.79 billion shares changing hands on the Tokyo stock exchange's main board as foreign investors stayed on the sidelines before the Bank of Japan's two-day policy meeting starting Thursday.