The Bank of Japan's rate hike is not just a tightening policy—it's a signal that the economy is bidding farewell to deflation and moving toward normalization, quietly reshaping the entire market logic.

From Japan's domestic perspective, this wave of change is creating the embryonic form of a structural bull market. The Nikkei 225 index continues to hit new highs, and the underlying logic is clear: rate hikes are driving economic transformation, with companies no longer hoarding cash but increasing investments in technology and market expansion. The banking sector benefits most directly, with net interest margins expanding, and those long-suppressed profit margins finally having a chance to recover.

The bond market is also interesting. Rising government bond yields bring volatility, but conversely, with the 10-year government bond yield approaching 2%, the appeal of these fixed-income assets has not been seen in many years. Investors who can withstand volatility now have an opportunity to allocate.

The chain reaction from the yen's appreciation is even more intriguing. Importers of raw materials and Japanese consumers can both benefit from the yen's appreciation by alleviating imported inflation. Moreover, this strengthening of the yen will gradually influence global capital flows through currency markets, commodities, and other channels. The disintegration of yen arbitrage trading is reshaping the global liquidity landscape.