Nikkei slips from record high as BOJ stays hawkish yen rallies and bonds swing

BOJ held rates steady, but markets heard tightening

Japan’s Nikkei slipped off a record high as government bonds swung sharply and the yen strengthened. The move followed a hawkish tone from the Bank of Japan, which kept interest rates unchanged. Even without rate hikes, traders reacted to expectations of tighter policy, reshaping the day’s risk sentiment across equities and JGBs.