Japanese shares hike following BOJ’s decision

Japanese shares rose on Tuesday as the Bank of Japan (BOJ) ended eight years of negative interest rates, marking the nation’s first policy tightening since 2007, Reuters reported on Tuesday.

Japan’s Nikkei index initially fluctuated after the decision but closed 0.66 per cent higher, with Japanese government bond yields decreasing.

The BOJ stated that it would maintain its current level of government bond purchases and increase them if yields spike.

The yen weakened to 150 per dollar. The BOJ shifted away from ultra-easy monetary policy, abandoning yield curve control and riskier asset purchases.

Analysts anticipate the yen to be impacted by the Federal Reserve’s policy decisions and expected rate cuts this year.

MSCI’s Asia-Pacific index excluding Japan dropped by 0.84 per cent. Chinese stocks also declined, with Hong Kong’s Hang Seng index inching down by over 1 per cent and the blue-chip shares falling by 0.59 per cent.