Japanese stock indices diverge after historic interest rate increase

Japan’s benchmark index narrowed the gap with its exporter-oriented counterpart on Tuesday following the decision from the country’s central bank to raise interest rates for the first time since 2007.

The country’s benchmark Topix index added 0.6 per cent for the day, while the Nikkei 225 index, widely watched by domestic retail investors but more exporter-oriented than the overall economy, was flat.

The yen, which remains at multi-decade lows, fell 0.6 per cent against the greenback to ¥150.02.

A weak currency has been a boon to the country’s exporters disproportionately represented in the Nikkei 225, helping it outperform the Topix this year.


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