Yen sinks, Nikkei gains after BOJ hike rates

TOKYO: The yen weakened and Japanese government bonds slid after the Bank of Japan raised interest rates in a well-telegraphed move, as dissent from two board members cast doubt on how aggressively it will tighten policy from now.

Japanese stocks rallied, helped by the weaker currency, which boosts the value of overseas earnings when repatriated into yen.

“The rate hike itself was in line with market expectations, but the two dissenting votes came as a modest surprise,” said Hirofumi Suzuki, chief FX strategist at SMBC in Tokyo.