TOKYO - The Nikkei stock index on Tuesday briefly topped 70,000 for the first time on relief after the Bank of Japan lifted its key policy rate to 1 percent in line with market expectations.
At 1:27 p.m., the 225-issue Nikkei Stock Average was up 396.55 points, or 0.57 percent, from Monday to 69,714.05, after marking 70,020.68 at one point. The broader Topix index was down 10.94 points, or 0.27 percent, to 3,988.66.
Stocks gained momentum in the afternoon following the release of the central bank's policy decision after investors took a wait-and-see approach in the morning session ahead of the BOJ's decision.
"As the post-meeting statement did not show a sense of caution in particular over price (rises), there was a sense of relief," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
Rise in heavyweight technology shares was sustained, tracking advances in their U.S. counterparts. Gains were partly trimmed shortly after the benchmark index topped the psychologically important line, as investors locked in gains on a sense of accomplishment.
Stocks had been on an upward trend following an agreement between the United States and Iran to end the war in the Middle East, rising around 3,300 points on the previous day.
