Key facts
- The Bank of Japan raised its policy rate to 1%, the highest in three decades.
- Japan's Nikkei 225 index surpassed 70,000 for the first time.
- The Nikkei 225 gained 0.8% to 69,871.13, with an intraday high of 69,916.34.
- The broader Topix index closed up 0.2% at 4,007.36.
- The yen strengthened slightly to 160.215 per dollar.
- 10-year Japanese government bond futures declined, pushing yields higher.
Japan's Nikkei 225 stock average surged past the 70,000 mark for the first time on Tuesday, driven by the Bank of Japan's decision to increase its policy interest rate to 1%. The move, widely anticipated by markets, saw the Nikkei gain 0.8% to 69,871.13, with an intraday peak of 69,916.34. The broader Topix index also flipped from earlier losses to a slight gain of 0.2%, closing at 4,007.36.
The yen maintained a slightly stronger tone against the dollar, trading around 160.215 per dollar, though still near a level that Japanese officials have previously indicated could warrant intervention. Japanese government bonds experienced a minor decline, with 10-year futures falling 0.28 yen and yields rising to 2.625%.
Stocks in the technology and data center sectors saw significant gains, with Advantest up 5.1%, Fujikura up 9.9%, and Furukawa Electric up 7.5%.