🚨Breaking! 🇯🇵 Japan's central bank hikes rates to 1.25%, yet the Nikkei surges against the trend!
The Bank of Japan approved a 25-basis-point rate hike by a vote of 7 to 2, bringing interest rates to their highest level in 31 years.
Even crazier: the Nikkei was up by about 2% at one point during the trading session, and the Japanese stock market’s value increased by roughly 236 trillion yen in a single day (about $15 billion).
🔥 The rate hike didn’t scare off capital—rather, it triggered a strong reaction after the “bad news being priced in.”
Global funds are re-pricing Japanese assets, and it’s also worth watching how yen carry trades will change next.
The Bank of Japan approved a 25-basis-point rate hike by a vote of 7 to 2, bringing interest rates to their highest level in 31 years.
Even crazier: the Nikkei was up by about 2% at one point during the trading session, and the Japanese stock market’s value increased by roughly 236 trillion yen in a single day (about $15 billion).
🔥 The rate hike didn’t scare off capital—rather, it triggered a strong reaction after the “bad news being priced in.”
Global funds are re-pricing Japanese assets, and it’s also worth watching how yen carry trades will change next.
