The Nikkei Index in Japan rose, driven by gains in bank stocks and the service sector, as expectations for an earlier interest rate hike boosted bank shares.

The Tokyo Stock Exchange index rose, mainly driven by gains in the banking and services sectors. The index increased by 0.3% to 4,112.59; the Nikkei index fell by 0.1% to 66,886.70. Market expectations for an earlier interest rate hike by the Bank of Japan have strengthened, boosting the banking sector, with Mitsubishi UFJ Financial Group contributing the most to the rise of the Tokyo index, increasing by 2.3%. Among the 1,637 constituent stocks of the index, 942 rose, 608 fell, and 87 remained unchanged.