Explained: Why Japan’s Nikkei soared to lifetime high even after BOJ hiked interest rates to 31-year high

Japan’s Nikkei index surged past 70,000 for the first time as the Bank of Japan raised its short-term policy rate to 1%, the highest in 31 years. The central bank’s gradual tightening, coupled with diminished Middle East conflict risks, supported equities. Simultaneously, an Iran-US peace deal boosted sentiment, leading to gains in India’s Sensex and Nifty.