Japan Stocks End Week in Green as BOJ Lifts Interest Rates

Published on 12/19/2025 at 01:57 am EST
(MT Newswires) -- Japanese shares closed higher after the Bank of Japan raised rates to a three-decade high and signaled scope for further tightening, reinforcing its shift away from ultra-loose policy.
The Nikkei 225 rose 1.03%, or 505.71 points, to close at 49,507.21.
In a widely expected step, the BOJ raised its short-term rate to 0.75% from 0.5% in its first increase since January, by unanimous vote, taking borrowing costs to their highest level since 1995.
The move reflected the BOJ's confidence that Japan is on track to sustainably meet its 2% inflation goal, supported by wage growth, and to continue normalizing policy. The central bank said wages and prices are likely to keep rising in tandem and that it will keep lifting rates if its outlook holds.
In other economic news, Japan's annual inflation eased to 2.9% in November from 3% in October as food price growth slowed to a one-year low, helped by the weakest rise in rice prices in 15 months.
On the corporate front, Toyota Motor, which ended 1.9% higher, said it will start importing and selling three of US-made models in Japan from 2026, including the Camry sedan, Highlander SUV and Tundra pickup, using a new vehicle registration system under review after US-Japan talks, aiming to meet broader consumer demand and support trade ties.
Separately, Sony Group , which declined 1.6%, said its unit Sony Music Entertainment (Japan) and Sony Pictures Entertainment agreed to buy WildBrain's roughly 41% stake in Peanuts Holdings for C$630 million, raising Sony's indirect holding to 80%.
Peanuts will become a consolidated Sony subsidiary, with the Schulz family retaining 20%, and Sony expects a remeasurement gain on its existing stake once the deal closes.

Sumber : MT Newswires