Following the BOJ's decision to raise its policy rate to 1.25%, its highest level in 31 years, the yen weakened and stocks remained firm. The Nikkei 225 rose by approximately ¥1,300 in the afternoon, closing at ¥65,018.
On the 18th, the BOJ raised its policy rate to 1.25%. The yen subsequently weakened by just under ¥1 against the dollar, falling to the ¥157-per-dollar range.
Market participants said views on the pace of future rate hikes could fluctuate depending on how differences in Japanese and US interest-rate trends are assessed, while moves to manage risk were seen as the yen continued to weaken.
The Nikkei 225 extended its gains into the afternoon, rising by approximately ¥1,300. It closed at ¥65,018, up ¥882 from the previous day and recovering to the ¥65,000 range for the first time in 8 days.
Some market participants also said expectations for stable interest rates and inflation could support companies as they formulate capital investment plans.