BOJ's Rate Hike Meets Expectations, Boosting Sentiment as Nikkei Index Surpasses 70,000 for the First Time

(Central News Agency reporter Daisy Dai, Tokyo, June 16) - Tokyo's stock market saw strong buying momentum in the afternoon session today, with the Nikkei Stock Average breaking through the 70,000 threshold for the first time in history, setting a new record high. Market analysts believe the Bank of Japan's announcement of an additional rate hike aligned with expectations, and the easing of Middle East tensions boosted investor confidence, becoming key drivers for the market rally.

According to NHK, the Tokyo stock market declined slightly in the morning as some investors took profits. However, in the afternoon, semiconductor-related stocks attracted strong buying interest, turning the market from red to green and pushing the Nikkei Average above 70,000 for the first time.

Market analysis attributes the rally to two main factors. First, U.S. President Trump announced that the United States and Iran have signed a memorandum to halt conflicts, raising market hopes for a de-escalation in the Middle East. Second, the Bank of Japan announced a further rate hike at noon today, raising the policy interest rate to approximately 1%. This move was widely seen as in line with expectations, further bolstering investor confidence.

The Nikkei Average only surpassed the 60,000 mark on April 23 this year, and has now gained 10,000 points in less than two months, highlighting the strong upward momentum in the Japanese stock market.

However, market observers note that due to the rapid short-term rise, many investors have chosen to lock in profits, meaning not all stocks rose. The gains were primarily concentrated in select technology and semiconductor-related individual stocks. (Editor: Wei Shu) 1150616