On Thursday (March 21), Japan's Nikkei 225 index soared to a new high, although the Bank of Japan raised interest rates for the first time in 17 years, but investors are still confident about the dovish attitude of the Bank of Japan。The Nikkei 225 index rose nearly 2 percent in morning trading to a new high of 40,787 points, close to the psychological 41,000-point mark.。

The Nikkei 225 rose broadly, while tech giants led the way, supported by higher demand that could come from the AI boom。

Thursday's rally was a delayed reaction to the Bank of Japan's dovish signal, given that Japanese markets were closed Wednesday。

On Tuesday, the Bank of Japan raised interest rates by 0.1%, while ending the negative interest rate and yield curve management program。However, Bank of Japan Governor Kazuo Ueda (Kazuo Ueda) said that monetary conditions will remain mainly loose for now, and the central bank will continue to buy some assets in the short term.。

For Japan's economy, especially the level of personal consumption, Governor Kazuo Ueda expressed deep concern。While a big pay rise later this year could boost consumption, the BoJ is looking for more indicators to prove it.。

Japanese stocks followed Wall Street's strong lead, hitting new highs after the Federal Reserve left interest rates unchanged and reiterated its forecast to cut rates at least three times this year。

However, despite the strong initial reaction of the Nikkei to the BoJ speech, analysts warned that the 41,000 point could be the top of the Nikkei, which could fluctuate in a range over the next few months.。

Citibank analysts wrote in a recent report: "If the Japanese stock market is to rebound, rather than just catch up with the U.S. market, we believe that Japan-specific catalysts (domestic demand recovery, persistent inflation, etc.) are needed, although the arrival of these factors is still far away.。"