Nikkei Rallies Amid Falling Yen and Oil Prices

Tokyo stocks closed higher on Friday despite the Bank of Japan's (BOJ) decision to raise its policy interest rate to 1.25 percent, its highest level in about 31 years.

The benchmark Nikkei 225 Stock Average rose by 882.70 points, or 1.38 percent, to close at 65,018.95.

The rally was driven by a falling yen and sliding oil prices, with AI and semiconductor heavyweights leading the charge. Advantest and Kioxia surged more than 7 percent, while tech investor SoftBank Group also gained ground.

Market analyst Timothy Pope noted that the rate hike had been largely priced in by investors, but the decision was not unanimous, with two BOJ board members dissenting.