Japan's Nikkei share average edged higher as investors awaited the Bank of Japan's latest interest rate decision

The Nikkei NI225 rose 0.4% to 36004.98, as of 0000 GMT, with the BOJ's policy announcement due some time in the late Tokyo morning or early afternoon.

Japan's Nikkei share average eked out gains on Thursday as investors awaited the Bank of Japan's latest interest rate decision, and developments in the U.S. trade talks with Tokyo's top negotiator in Washington.

The Nikkei NI225 rose 0.4% to 36,177.63, by 0150 GMT, with the BOJ's policy announcement due some time in the late Tokyo morning or early afternoon.

The broader Topix TOPIX was flat.

The tech-heavy Nikkei was buoyed by a 6.3% jump for chip-testing equipment maker Advantest 6857, as it tracked after-hours advances for U.S. tech megacaps Meta Platforms META and Microsoft MSFT on strong financial results.

Japan's central bank is widely expected to leave rates steady, while cutting growth forecasts. Investors will be more focused on what BOJ Governor Kazuo Ueda has to say on the impact of U.S. trade policy in the board's thinking about when to next raise interest rates.

Market-implied odds for a quarter-point hike by year-end are currently little better than a coin toss, according to LSEG calculations.

Later in the day, Japanese economy minister Ryosei Akazawa is likely to hold his second round of talks on a tariff deal.

U.S. President Donald Trump said on Wednesday that deals with Japan, South Korea and India may be close.

"Any progress in these negotiations, and although it will be little by little, should see calm return to Japanese equities, and the Nikkei could recover to the 37,000 level," said Wataru Akiyama, a strategist at Nomura Securities.

Trade uncertainty continued to weigh on shipping shares, with the sector MMT dropping 2.8% to be the worst performer among the Tokyo Stock Exchange's 33 industry groups.

The Nikkei's biggest decliner was Murata Manufacturing 6981, which tumbled nearly 15% after reporting financial results that disappointed investors.