Japanese markets end flat after BoJ rate hike

Japanese markets surrendered early gains to end on a flat note as the Bank of Japan hiked the short-term rate target by 25 basis points as expected and new data showed core inflation rose last month at the fastest pace in 16 months.

The yen gained and bond yields rose as the central bank raised its interest rates to their highest since the 2008 global financial crisis, revised up its inflation guidance and signaled more increases to come if GDP and price growth hit forecasts.

The Nikkei average and the broader Topix index both finished marginally lower at 39,931.98 and 2,751.04, respectively.

Shares of Mitsubishi Motors plunged 6.9 percent after reports emerged that the company won't be a part of Honda Motor Co. and Nissan Motor Co.'s plans to combine their companies under a holding company.

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