In the Japanese market on the 25th, stocks remained firm, led by banks and electrical machinery, as the yen's gains widened, while short-term bond yields rose and long-term yields fell.
The yen, which had edged higher in Tokyo trading, extended its gains after reported remarks by Finance Minister Katayama (片山) expressing concern about yen weakness at a Japan-US summit meeting. Yen buying was also supported by Economic and Fiscal Policy Minister Kiuchi (城内)'s view that the phase of reflationary policy had ended. Equities remained firm, led by banks and electrical machinery, while in the bond market the 2-year yield rose and long-term yields turned lower.
In domestic market trading, the yen was in the low ¥158s against the dollar, TOPIX closed approximately 1.3% higher at 4128.59, and the Nikkei average rose approximately 1.3% to ¥66,364.20. Market participants said that buying to secure dividend entitlements also provided support against a backdrop of stable economic conditions and corporate earnings.