The Japanese Nikkei index closed the session stable as it prepares for the Bank of Japan's decision.

The main Japanese stock index closed stable in its first trading session of the week on Monday, as investors prepared for the monetary policy decision from the Bank of Japan, which is set to be announced later this week, just a day after the US Federal Reserve's monetary policy decision.

At the same time, data released this morning showed that core machinery orders in Japan exceeded expectations in October, indicating a potential increase in capital spending over the coming months. Additionally, Purchasing Managers' Index (PMI) indicators showed signs of improvement in the manufacturing and services sectors during December.

In terms of trading, the Nikkei 225 index experienced a slight decline of 0.03% or 12.95 points, closing the session at 39,457.27 points, while the broader Topix index closed down by a larger margin of 0.3% or 8.23 points, standing at 2,738.33 points.

Among individual stocks, shares of some heavyweight companies within the Nikkei Index notably fell, with Tokyo Electron, a chip testing equipment manufacturer, declining by 0.9%, Kawasaki Heavy Industries’ stock down 0.8%, and Tokyo Marine shares decreasing by 2.3%.