Japan Stocks Held Up As BoJ Rate Hikes Look Slower

l loose versus other major central banks, investors see less urgency for rapid tightening, which helped keep the Nikkei resilient.

Why should I care?

For markets: Rate patience keeps cheap funding in play.

If rates stay on hold for longer, it generally supports companies that rely on borrowing and investors’ willingness to pay up for future earnings. You can see that mindset in corporate funding plans: Tokyo Century said its Aviation Capital Group is planning a $1 billion bond sale to fund aircraft purchases and manage debt. A slower hiking cycle can also keep the focus on fundamentals – profit margins, pricing power, and balance-sheet strength – rather than pure “rates” positioning.

The bigger picture: Japan’s slow normalization is a global outlier.

A measured BoJ keeps Japan one of the few big economies where real borrowing costs can stay comparatively low, which matters for global capital flows and the yen. It also gives companies room to plan longer-term investments, even as they explore new markets – including sustainability-linked revenue streams such as forestry-based carbon credits, which firms like Marubeni have signaled interest in developing.