Global Stocks Mixed as Yen Falls Despite BoJ Rate Hike

Global stock markets were mixed at the end of a week marked by central bank moves to combat inflation. The Bank of Japan raised interest rates to a three-decade high, but the yen fell against the dollar due to concerns that the pace of hikes might be slower than expected.

The 25-basis-point hike to 1.25 percent was expected after recent tightening by the European Central Bank and the US Federal Reserve. However, it was carried by a 7-2 majority vote, which some analysts saw as a sign that the pace of hikes might be slower than anticipated.

Stephen Innes at Quintex Intel noted that the dissenting votes mattered for a market looking for evidence that the Bank of Japan could shorten the distance between hikes. Oil prices pulled back on hopes that Saudi Arabia was moving to restore about half of crude shipments within days after they were disrupted by the stoppage of its East-West pipeline to the Red Sea, before paring losses.