The BOJ is widely expected to end its negative interest policy, introduced in January 2016, this spring. (Source photos by Nanami Sato and Kohnosuke Urata)

Japan stocks give boost to BOJ's case for monetary tightening

Investors anticipate rate hike to 0-0.1% in April as Japanese yen hovers near 34-year low

MITSURU OBE, Nikkei Asia chief business news correspondent

February 26, 2024 06:00 JST

Updated on February 26, 2024 15:13 JST

TOKYO -- The Bank of Japan got a fresh boost to its bid to end its negative interest rate policy when the Nikkei Stock Average hit a record high for the first time in 34 years.

By Thursday's close, Japan's benchmark stock index had risen 17% in the first two months of 2024 on top of last year's 28% rise. This has provided a cushion against a possible impact from a rate hike that is widely expected to happen in the next couple of months, and would be the first monetary tightening in 14 years.