Key facts
- Japan's Nikkei 225 index surpassed 70,000 for the first time.
- The Bank of Japan raised its policy rate to 1%, the highest in 31 years.
- Technology stocks globally were boosted by SpaceX's strong IPO performance.
- Nvidia announced a $25 billion debt sale for general corporate purposes.
- Oil prices fell to a three-month low.
- The yen remained flat against the dollar.
Japan's Nikkei 225 index surpassed 70,000 for the first time on Tuesday, reaching a historic milestone after the Bank of Japan raised its benchmark policy rate to 1%. This move, the highest in 31 years, was largely anticipated by markets. The Nikkei 225 saw an intraday peak of 69,916.34 before closing higher, while the broader Topix index also edged up.
Globally, stocks showed a measured rise, with technology shares gaining traction. SpaceX's recent blockbuster IPO, which saw its shares jump nearly 20% on Monday, continued to lift investor sentiment, with its market value exceeding $2 trillion. Nasdaq futures saw a slight increase, while S&P 500 e-mini futures remained flat.
Nvidia surprised markets by tapping the bond market for $25 billion, stating the funds would be used for general corporate purposes. Meanwhile, oil prices slid to a three-month low, despite ongoing concerns about transit through the Strait of Hormuz. The U.S. dollar index held steady, and the yen remained flat against the dollar following the Bank of Japan's rate hike.
In Europe, the STOXX 600 index rose, led by gains in Schneider Electric and ASML. Analysts noted that the market is moving closer to optimism, with a focus on the extent of systemic inflation and its effect on consumers. The preliminary agreement between Washington and Tehran on a peace deal provided initial investor relief, though its durability is expected to be tested.