BoJ Holds Rates as Nikkei Plummets; Analysts Bullish on Shell and Gilead

By / / Breaking News

This update was written automatically with AI from market data and news wire reports, and published without review by a person.

Key Takeaways

  • The Bank of Japan (BoJ) maintained its short-term policy rate at 1.25% in an 8-1 vote, while revising its inflation forecasts upward to reflect persistent price pressures.
  • The Nikkei 225 (JP225) dropped 2.5% following the decision, driven by a broader technology sector rout and a strengthening Japanese yen.
  • RBC Capital Markets raised its price target for Shell (SHEL) to 4,100p, citing robust quarterly results and favorable energy market positioning.
  • Jefferies increased its price target for Gilead Sciences (GILD) to $196, following the company's strong Q3 earnings beat and upgraded fiscal year guidance.

Bank of Japan Holds Rates Amid Market Volatility

The Bank of Japan concluded its two-day policy meeting on Friday, October 30, 2026, by electing to keep its benchmark interest rate steady at 1.25%. The decision was largely expected by markets, though it featured a lone dissent from board member Hajime Takata, who advocated for a 25-basis-point hike to 1.5%. In its quarterly outlook report, the central bank noted that underlying inflation has reached its 2% target and is expected to remain around that level, signaling that further rate hikes remain on the table for December or January.

Despite the widely anticipated "hold," Japanese equities faced significant selling pressure. The Nikkei 225 (JP225) extended its losses to 2.5%, as investors reacted to a firming yen and continued weakness in global technology stocks. Meanwhile, 10-year JGB futures gave back early gains following the announcement, trading higher by 0.34 point as the market digested the BoJ's hawkish tone regarding future borrowing costs.

Analysts Raise Targets for Energy and Biotech Leaders

In the corporate sector, major financial institutions issued bullish updates for global leaders in energy and pharmaceuticals. RBC Capital Markets raised its price target for Shell (SHEL) to 4,100p from 4,000p. The upgrade follows Shell's recent earnings report, which demonstrated the company's ability to maintain strong cash flow and shareholder returns despite fluctuating global oil prices.

Simultaneously, Jefferies significantly boosted its outlook for Gilead Sciences (GILD), raising the price target to $196 from $185. This adjustment comes on the heels of Gilead's Q3 2026 earnings report, where the biopharmaceutical giant reported an adjusted EPS of $2.55, far exceeding the consensus estimate of $1.78. The company also raised its full-year revenue guidance, supported by a 16% year-over-year increase in its base business sales, marking its strongest growth in over a decade.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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