New Delhi, Dec. 19 -- Bank of Japan's rate hike decision: Japanese stock markets reacted positively to the Bank of Japan's (BOJ) expected interest rate hike, with the flagship Nikkei 225 surging as much as 1.42% following the announcement on Friday, December 19.

Investors also took cues from the strength in overnight trade in the US markets, where ​a ⁠rally in chip stocks lifted all three major ⁠Wall Street indexes.

The Nikkei 225 index hit the day's peak of 49,766.96, up 1.5% over the last close of 49,001.50. It had opened nearly 0.8% higher today.

BOJ raised the interest rates to the highest level in 30 years amid sticky inflation and left the door wide open to further tightening beyond the next year.

The BOJ raise...