Japanese shares ended higher on Monday after the BOJ held rates steady and signaled a slower balance sheet reduction next year, opting for a cautious stimulus exit.

The Nikkei 225 rose 0.59%, or 225.41 points, to end at 38,536.74.

The BOJ kept rates at 0.5% on Tuesday, as rising Middle East tensions and U.S. tariffs complicate plans to raise rates and shrink its balance sheet, now roughly the size of Japan's economy.

The central bank cited uncertainty over global trade and policy risks. Markets await Governor Kazuo Ueda's comments for clues on the timing of future hikes.

On the corporate front, Mixi (TYO:2121) signed a deed with PointsBet (ASX:PBH) allowing a full takeover if shareholders reject its scheme-based offer.

Mixi plans to acquire all 331.7 million shares at AU$1.2 each, valuing the deal at AU$398 million (39.8 billion yen), via its unit Mixi Australia.

A vote is set for June 25; the board will back the alternative offer if Mixi secures over 50.1%.

NTT UD REIT (TYO:8956) reported a 4.6% rise in net income to 4.56 billion yen for the half-year ended April 30. EPS rose to 3,090 yen, revenue grew 8.2% to 13.3 billion yen, and it declared a 3,104 yen distribution per unit.

Copro (TYO:7059) posted a 92.5% utilization rate in May, up 2 points from April.

Technical staff rose to 5,161, with 4,774 active. IT dispatch utilization climbed to 95.8%. Excluding trainees, overall utilization slipped to 93.6% from 94%.