Nikkei Turns Higher After BOJ Decision

The Nikkei 225 Index rose 0.9% to above 69,900 on Tuesday, reversing earlier losses and hitting fresh record levels after the Bank of Japan delivered a widely expected 25 basis point rate hike to 1%. The move signaled policymakers’ determination to address inflation pressures linked to the Iran conflict and support a persistently weak yen. However, some policymakers opposed the increase, with Toichiro Asada noting that downside risks to output and employment outweigh upside risks to inflation. Investors also monitored geopolitical developments amid expectations that the US and Iran will sign a peace agreement in Switzerland on Friday, a step that could lead to the reopening of the Strait of Hormuz. Technology shares led gains, with strong performances from Kioxia Holdings (4.4%), Taiyo Yuden (6.2%), Murata Manufacturing (5.9%), Advantest (3.1%), and Fujikura (8.8%).

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