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Tokyo stocks rise as BOJ adopts cautious stance on rate hike, yen falls

In the midst of volatile trading, Tokyo stocks ended the day higher as the yen weakened against the U.S. dollar due to the Bank of Japan’s cautious stance on interest rates. The Nikkei Stock Average rose by 1.19 percent to 35,089.62, while the broader Topix index saw a 2.26 percent increase.

Gainers in the Prime Market included bank, wholesale trade, and securities house shares. The dollar climbed against the yen after BOJ Deputy Governor Shinichi Uchida suggested that the policy rate would remain stable to support monetary easing.

Market sentiment shifted with the benchmark index bouncing back from recent losses. Uchida’s comments provided a boost, easing concerns about a near-term rate hike. Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., highlighted the impact of the dovish statement on yen weakness and stock relief.

Despite recent turbulence, the market is showing signs of stabilization as fears of an immediate U.S. recession subside. With calmness on the horizon, investors are optimistic about the future outlook for Japanese stocks.

© KYODO

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