Japanese stocks started the week on a positive note but quickly gave up most of their early gains as investors assessed the impact of the Bank of Japan's latest monetary policy decision.

On Friday, the BOJ raised interest rates by 25 basis points to 0.5%, marking the highest short-term borrowing costs in 16 years. The central bank also projected inflation to reach its 2% target in the second half of its forecast period, suggesting the possibility of more rate hikes ahead.

Investor sentiment soured further following news that US President Donald Trump had imposed tariffs and sanctions on Colombia after the country blocked US migrant deportation flights.

Technology stocks were hit hardest, with notable declines from Disco (-4.4%), Advantest (-7.1%), and Tokyo Electron (-1.8%). However, there were some bright spots in the market, with Mitsubishi UFJ gaining 2.8%, Fast Retailing rising 2.9%, and Toyota Motor up 1.7%.

Source : Trading Economics