Global stocks mixed as yen falls despite Bank of Japan rate hike

But markets were more decisively negative in Europe, where Frankfurt, London and Paris all lost around 1.5 per cent.

The Bank of Japan raised interest rates to a three-decade high, but the yen sank against the dollar on fears the pace of hikes might be slower than expected.

The 25-basis-point hike to 1.25 per cent was expected by markets following the recent tightening by the European Central Bank and the US Federal Reserve, though the decision was not unanimous as it was carried by a 7-2 majority vote.

Pressure has increased on officials to further tighten monetary policy as a spike in oil prices caused by the Middle East crisis – which shows little sign of ending anytime soon – is expected to keep putting upward pressure on inflation.

“For a market looking for evidence that the BoJ could shorten the distance between hikes, those dissents mattered,” said Stephen Innes at Quintex Intel.

Oil prices pulled back on hopes that Saudi Arabia was moving to restore about half of crude shipments within days after they were disrupted by the stoppage of its East-West pipeline to the Red Sea, before paring losses. Yet both major crude contracts remain above US$100 a barrel.

Among individual companies, Nike fell 2.3 per cent after French star football player Kylian Mbappe signed with Swiss sportswear brand On, ending a long association with the US brand that stretched back to the start of his career.