Japan’s central bank moved decisively, raising its policy rate to 1% after years of near‑zero stance. The decision marked the first hike in a decade and sent ripples through bond markets as investors recalibrated expectations for future monetary easing.

The yen surged, closing above the 70,000‑yen threshold against the dollar for the first time since the early 1990s. Traders linked the move to the BOJ’s rate rise and a tightening global risk appetite, prompting a swift sell‑off in Japanese equities, especially tech and bonds.

Meanwhile, the Iran‑US peace agreement added a geopolitical layer, easing long‑standing sanctions concerns and opening avenues for energy trade. Market participants weighed the potential for a smoother supply chain against lingering diplomatic uncertainties.

Collectively, these moves reshaped risk sentiment across the Asia‑Pacific. Bond yields edged higher, while Tokyo’s Nikkei slid to new lows near the 70,000‑yen mark. Corporate earnings forecasts were revised downward, and investors shifted capital toward defensive assets, reflecting a pullback from aggressive growth bets as markets absorb the new monetary reality.