World shares showed a mixed performance following the Bank of Japan's decision to raise its benchmark interest rate for the first time in 17 years, moving from a negative rate policy to a range of 0 to 0.1%. The Tokyo's Nikkei 225 index rose by 0.7% to 40,003.60, while the dollar strengthened against the Japanese yen. The BOJ cited stable inflation above its 2% target but highlighted uncertainties in various sectors such as industrial production, exports, and government spending.
Analysts viewed the rate hike as a measured step to transition from extreme policies without aggressively tightening credit. Expectations suggest the BOJ may maintain a near-zero interest rate policy for another year. Meanwhile, the focus shifts to the Federal Reserve's upcoming meeting on interest rates, with the anticipation that the central bank will maintain its current rate level.
European markets saw modest gains, with Germany's DAX and Paris' CAC 40 edging higher. The Bank of England is set to announce its interest rate decision later in the week. In China, troubled property developer China Evergrande Group faced a significant fine for alleged revenue falsification, impacting the market sentiment and leading to declines in Chinese markets.
In Asia, Seoul's Kospi and Hong Kong's Hang Seng index experienced losses, while Australia's S&P/ASX 200 saw a slight increase after the Reserve Bank of Australia kept its benchmark interest rate steady. The S&P 500 and Dow Jones Industrial Average in the U.S. showed positive movements, despite concerns over higher-than-expected inflation reports.
In the oil market, U.S. benchmark crude oil prices dipped slightly, while the euro weakened against the dollar. Overall, global markets are closely monitoring central bank decisions and economic indicators for insights into future monetary policies and market trends.
