TOPIX edged higher on the 7th. Stock picking broadened on the back of strong earnings and supported the market, although concerns over the weaker yen and higher oil prices remained.
In Tokyo trading on the 7th, the yen traded in the low ¥158s, with the move toward a weaker yen pausing at times compared with the New York close. Buying of dollars for actual demand and dollar selling offset each other, while concerns over foreign-exchange market intervention remained strong.
Bonds came under notable selling pressure as U.S. yields rose, with the yield on the newly issued 10-year JGB climbing to 2.795%. Selling was particularly strong in medium-term bonds.
In equities, TOPIX was up 0.5%, while the NIKKEI was down 0.1%. Nintendo rose after its first-quarter operating profit exceeded market expectations, while Fujikura raised its full-year plan. Trading houses and oil-related stocks strengthened on higher crude oil prices, while SoftBank Group declined.
Market participants said the market lacked a clear direction amid tensions surrounding the Strait of Hormuz and other factors, while some said stock picking on the back of strong earnings supported the market.