The Nikkei average recovered on 10 September, led by AI-related stocks, although rising long-term interest rates and higher oil prices weighed on the market. The yen traded briefly in the mid-¥153 range against the dollar.
In Japan's market on 10 September, long-term interest rates rose, with the 10-year Japanese government bond yield climbing 5.5bp from the previous day to 2.935%. By contrast, the 2-year yield fell 1bp, steepening the yield curve. The Nikkei average held firm toward the close, ending at ¥65,270.95, while the TOPIX was up 0.2% at 4054.58. The yen was little changed at ¥153.55 per dollar, near its New York close.
Market participants said the US Treasury secretary's policies had not produced sufficient results, and pointed to the possibility that inflation concerns driven by higher oil prices and upward pressure on interest rates globally would persist. At the same time, there were periods of renewed buying, particularly in AI-related stocks, and stocks in the machinery, financial, services and electrical equipment sectors generally rose.