Snapshot: The Nikkei 225 finished up 0.13% at 69,404, scaling the historic 70,000 mark intraday after the Bank of Japan delivered a 25 basis point rate hike to 1.00%. While policymaker Toichiro Asada dissented due to growth concerns, the decision to defend the weak yen and curb inflation was digested as a hawkish but necessary step. Tech-led buying buffered the cash index, with Fujikura surging 8.5% as geopolitical relief over a potential US-Iran peace agreement in Switzerland supported global equity sentiment.
- The BOJ’s policy hike to 1.00% signals a structural regime shift that provides a solid floor for local financials, even as dissenting votes highlight lingering growth concerns.
- Keep a close eye on US 10-year yields, currently printing at 4.48%, as any further upside during the NY session poses a valuation hurdle for high-beta Japanese semiconductor names.
Bias into NY: We hold a bullish bias for the Nikkei 225 targeting 70,500, as domestic tech resilience and BOJ policy clarity anchor the index against rising US Treasury yields ahead of the NY data prints.