Nikkei 225 Tops 70,000 for First Time as BOJ Lifts Rate to 1%
Updated
Updated · The Japan Times · Jun 16
Nikkei 225 Tops 70,000 for First Time as BOJ Lifts Rate to 1%
3 articles · Updated · The Japan Times · Jun 16
Summary
70,020.68 marked a new intraday record for the Nikkei 225 on Tuesday before the index slipped back to close at 69,404.50, still up 0.13%.
A Bank of Japan rate hike to 1% from 0.75% helped trigger the breakout after noon, while advancing U.S.-Iran talks and the planned reopening of the Strait of Hormuz pushed oil prices sharply lower.
WTI, Brent and naphtha are each down about a third from recent peaks, easing one of the biggest risks hanging over Japanese equities.
The rally has accelerated fast: the Nikkei first cleared 60,000 on April 23, has now gained more than 80% over the past year, and was also lifted by AI and chip stocks after the Nasdaq jumped 3% and the Philadelphia Semiconductor Index hit a record.
Attention now turns to whether Middle East risks are truly contained, with no text yet released for the interim U.S.-Iran agreement ahead of an expected memorandum signing in Switzerland on Friday.