Nikkei 225 Tops 70,000 After Bank of Japan Raises Rate to 1%
The Nikkei 225 reached an intraday high above 70,000 on Tuesday after the Bank of Japan raised its benchmark rate to 1%. The move followed a preliminary U.S.-Iran agreement to reopen the Strait of Hormuz and lower oil prices.
The Nikkei 225 stock average reached an intraday high above 70,000 on Tuesday after the Bank of Japan raised its benchmark interest rate to 1% from 0.75%. The index hit 70,020.68 shortly after the central bank announced the decision just after noon before closing at 69,404.50, up 0.13%.
The advance came as the U.S. and Iran reached a preliminary agreement to reopen the Strait of Hormuz. West Texas Intermediate crude and Brent crude prices have each fallen about one-third from recent peaks, along with naphtha.
Artificial intelligence and semiconductor-related stocks rose after an overnight rally in U.S. markets, where the Philadelphia Semiconductor Index reached a record and the Nasdaq composite gained 3%. The Nikkei 225 has climbed more than 80% over the past year and took less than two months to rise from 60,000, first reached on April 23, to the new level.
No text of the U.S.-Iran agreement has been released. The two countries are scheduled to sign a memorandum of understanding in Switzerland on Friday. "The Deal with the Islamic Republic of Iran is now complete," U.S. President Donald Trump posted on Truth Social on Monday.
