Japan Nikkei surges on BoJ rates hike

Japan stock market finished session sharply higher on Tuesday, 19 March 2024, as risk sentiments underpinned after the Bank of Japan hiked its benchmark interest rate for the first time in 17 years, ending a longstanding negative rate policy.

The Bank of Japans raised the overnight call rate to a range of 0 to 0.1%, up from minus 0.1%, citing wage increases and other indicators suggested that inflation had stabilized above the BOJ's 2% target, but noted extremely high uncertainties, including weakness in industrial production, exports, housing investment and government spending.

The 225-issue Nikkei Stock Average index advanced 263.16 points, or 0.66%, to finish at 40,003.60. The broader Topix index of all First Section issues on the Tokyo Stock Exchange climbed up 28.98 points, 1.06%, to 2,750.97.

Shares of exporters gained strongly, thanks to yen depreciation to mid-150 level against greenback which likely boosts their overseas profits. Toyota Corp surged 3.02% to 3,675 yen. SoftBank Group gained 0.35% to 8,821 yen, Sony Group added 0.97% to 13,460 yen and Nissan edged up 0.06% to 605.7 yen.

CURRENCY NEWS: Japanese yen fetched 150.31 per US dollar compared with 149.16 per US dollar in Tokyo on MOnday.

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