Japan's Nikkei tops 70,000 as BOJ rate hike sparks record rally
The Bank of Japan raised its policy rate to 1%, the highest level since 1995. Nikkei Asia reports the Nikkei 225 index then climbed above 70,000 points to a new record high after the decision. Investors are reading the hike as confirmation that Japan's policy stance against deflation has firmed.
The Bank of Japan raised its policy rate to 1%, the highest level in 31 years, Nikkei Asia reports. After the decision the benchmark Nikkei 225 index climbed above 70,000 points, marking a new all-time high on the Tokyo Stock Exchange.
In its statement the central bank said wage growth has now caught up with inflation in a way that supports gradual policy normalisation. Governor remarks indicated future steps will remain data-dependent and not pre-committed to a fixed path.
Nikkei Asia says the yen settled after a brief swing, while financial-sector shares led gains on the rate move. Automakers and tech exporters will be watched more cautiously given their currency sensitivity. Investors say the BOJ path could shape capital flows and carry-trade positioning in coming weeks. None of this constitutes investment advice.
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