Nikkei Hits 70,000 for First Time as BOJ Raises Key Rate

TOKYO (AP) — Japan’s Nikkei 225 stock index briefly topped 70,000 for the first time Tuesday before trimming gains. The milestone came as the Bank of Japan raised its key interest rate by a quarter percentage point to 1%, its highest level in three decades. By early afternoon, the Nikkei 225 was up 0.6% at 69,713.05. South Korea’s Kospi jumped 2.1% to a record 8,721.64, while the Shanghai Composite added less than 0.1% to 4,100.53. Other Asian markets were mixed. Australia’s S&P/ASX 200 fell 0.3% to 8,892.10, and Hong Kong’s Hang Seng slipped 1.3% to 24,533.35. Taiwan’s Taiex rose 0.6%, and India’s Sensex gained 0.5%. The gains followed a strong day on Wall Street. The S&P 500 climbed 1.7%, the Dow Jones Industrial Average rose 0.9% to a record, and the Nasdaq composite surged 3.1%. Markets rallied after the United States and Iran reached a tentative deal to reopen the Strait of Hormuz, a key waterway for global oil shipments. Brent crude fell 4.8% on expectations of resumed oil flows. Analysts warned that negotiations will continue for 60 days, and it could take months for the energy industry to return to full speed. Oil prices have dropped from over $100 a barrel a few weeks ago. Before the war, oil traded at about $70 a barrel. Early Tuesday, benchmark U.S. crude fell 9 cents to $80.66 a barrel. Brent crude, the international standard, declined 24 cents to $82.93 a barrel. In U.S. stock trading Monday, artificial-intelligence companies surged. Micron Technology jumped 10.8%, Advanced Micro Devices rose 7%, and Nvidia gained 3.5%. SpaceX, Elon Musk’s rocket company, rose 19.6% in its second day of trading. Treasury yields eased on hopes that lower oil prices will reduce pressure on central banks to raise interest rates. The yield on the 10-year Treasury slipped to 4.47% from 4.48% late Friday. In currency trading, the U.S. dollar was nearly unchanged at 160.33 Japanese yen. The euro cost $1.1580, down from $1.1592.