Tokyo's Nikkei 225 index gained 0.3% to 40,074.87 after the central bank raised its benchmark rate to about 0.5% from 0.25%, as widely expected. It is the highest level for the rate since 2008, as the Bank of Japan shifts out of a long spell of extreme low interest rates meant to spur more borrowing and spending.

Asian equities rose, following a rebound in technology stocks that pushed Wall Street to a record high. Investors also await Bank of Japan’s policy decision, where a hike is expected later Friday.

Asian shares finished higher on Tuesday, a day after President Donald Trump was sworn into office. European shares appear unable to rally. Japan’s Nikkei finished 0.3% higher and the Hang Seng in Hong Kong rose 0.