Japan’s Nikkei index reached a lifetime high above 70,000 after the Bank of Japan raised its short-term policy rate to 1 percent from 0.75 percent, the highest level in 31 years. The decision aligned with market expectations and marked the first hike since December. Deputy Governor Shinichi Uchida noted reduced risks of economic deterioration but highlighted broadening price increases and potential deviations in underlying inflation. Following the announcement, the Nikkei rose as much as 1 percent, while government bonds declined and the yen held a slightly firmer tone against the dollar. Analysts observed that the move was not aggressive enough to prompt major currency shifts, maintaining supportive financial conditions for equities. Gains were led by chip-testing and data center-related stocks. Broader market sentiment also improved after reports of a US-Iran peace agreement framework, which eased concerns over Middle East growth risks. Sensex and Nifty indices advanced on the news.
