Nikkei Average Briefly Tops 70,000 for 1st Time

Tokyo, June 16 (Jiji Press)–Japan’s benchmark Nikkei average surpassed the 70,000 threshold for the first time ever at one point on Tuesday after the Bank of Japan decided to raise interest rates in line with market expectations. The index of 225 selected issues on the Tokyo Stock Exchange’s top-tier Prime section rose as high as 70,020.68 before finishing at a new record closing high of 69,404.50, up 87.00 points, or 0.12 pct, from Monday. On the other hand, the broader TOPIX index fell 8.46 points, or 0.21 pct, to 3,991.14. Buying picked up after the BOJ decided at its two-day policy-setting meeting that ended earlier on Tuesday to raise its policy interest rate from 0.75 pct to a 31-year high of 1 pct. An official of a Japanese asset management company said that the Japanese central bank’s latest meeting “put investors at ease,” given that the outcome was what market participants had expected. The Nikkei’s rise, however, was somewhat limited due to profit-taking pressure amid growing concerns over an overheating market following recent sharp gains. END [Copyright The Jiji Press, Ltd.]