British News Agency

The Bank of Japan, in line with market expectations, unanimously raised its short-term interest rate by 25 basis points to 0.75%. This marked the highest level since September 1995. Japan’s interest rate averaged 2.22% from 1972 to 2025, reached an all-time high of 9% in December 1973, and fell to a record low of -0.10% in January 2016.

Japan’s consumer inflation rate fell to 2.9% in November. Core inflation, which excludes fresh food prices, was unchanged from 3% in October and aligned with the average forecasts of economists surveyed.

Japan’s Nikkei 225 Index rose 1.33% and the Topix Index gained 1.06%. The Japanese yen weakened 0.33% against the U.S. dollar to 156.06. As a result, the 10-year government bond yield climbed 3 basis points to 2%, its highest level since May 2006. Yields on 20-year bonds rose 2 basis points to 2.962%.

South Korea’s Kospi Index added 0.77% and the small-cap Kosdaq Index jumped 1.49%. Australia’s S&P/ASX 200 Index advanced 0.51%. Hong Kong’s Hang Seng Index gained 0.59%, while mainland China’s CSI 300 Index rose 0.58%.

In the U.S. on Thursday, the S&P 500 ended a four-day slide, supported by lower-than-expected inflation data that strengthened expectations for rate cuts in 2026, along with chipmaker Micron Technology’s better-than-expected guidance.

The broad market index climbed 0.79% to 6,774.76, the Nasdaq Composite rose 1.38% to 23,006.36, and the Dow Jones Industrial Average added 65.88 points, or 0.14%, to close at 47,951.85.