Snapshot: The Nikkei 225 reversed early losses to close up 0.13% at a record 69,404, shrugging off the Bank of Japan’s 25 basis point rate hike to 1.00% at 12:19 JST. Policymakers acted to combat persistent inflation, but dissent from board member Asada regarding employment risks reassured the market that the tightening cycle will remain highly gradual. This domestic policy clarity unleashed a powerful catch-up rally in key tech exporters like Fujikura (+8.5%) and Taiyo Yuden (+5.3%).
- Solid institutional demand defended the 69,000 level post-decision, validating that the structural equity bid remains intact even as local borrowing costs normalize.
- Global macro factors could cap near-term momentum if US 10-year real yields at 2.17% persist, though a looming Swiss peace agreement on Friday may ease the oil-driven inflation pressure that forced the BOJ’s hand.
Bias into NY: We are tactically bullish, targeting the 70,000 level as the domestic policy hurdle is cleared, amplified by a constructive risk backdrop with the VIX anchored at 16.2.