TOPIX remained firm immediately after the market opened on the 28th. Investor sentiment improved on the back of strong US earnings, and TOPIX extended its gains for a seventh consecutive trading day. The yen is trading in the low ¥159 range.
In Japan's market on the 28th, bonds fell and interest rates rose, while equities remained firm as TOPIX extended its gains for a seventh consecutive trading day on positive assessments of solid corporate earnings and strong results in the US market. Investors remain cautious ahead of the Jackson Hole meeting, but corporate earnings outlooks are generally providing support. With long-term interest rates rising, developments in the US are being closely watched, and some market participants said they could also affect the outlook for the auction of 2-year government bonds.
The Tokyo metropolitan area CPI released in the morning rose month on month, but the market reaction was limited to what had been expected. Reports that Prime Minister Takaichi would restrain the issuance of new government bonds also had little impact on the market. In the bond market, a Nikkei-affiliated strategist was quoted as saying that bond prices could come under downward pressure at times, amid views that US long-term interest rates would continue to rise.