TOKYO, Dec. 19 (Xinhua) -- Japan's benchmark 10-year government bond yield hit 2.020 percent on Friday, its highest level since August 1999, after the Bank of Japan (BOJ) raised its key interest rate to 0.75 percent.
The barometer of long-term interest rates also climbed on concern over Japan's fiscal health, fueled by the massive spending plan implemented under Prime Minister Sanae Takaichi.
The yen briefly weakened to the lower 156 yen range against the U.S. dollar following the BOJ's widely expected move. It later moved narrowly around 156.
Stocks remained firm throughout the day, with the benchmark Nikkei briefly advancing more than 700 points, as the BOJ's decision fell within market expectations, easing investor concerns and prompting buying, brokers said.
The 225-issue Nikkei Stock Average ended up 505.71 points, or 1.03 percent, from Thursday at 49,507.21. The broader Topix index increased 26.77 points, or 0.80 percent, at 3,383.66.
Earlier on Friday, the BOJ raised its benchmark interest rate by 25 basis points to 0.75 percent, its highest level in three decades, and left the door open for more hikes. The move marks its first rate hike since January. ■