Japanese equities rose as turmoil in the bond market subsided. The US Treasury's expansion of its purchases of long-term bonds restored market sentiment, prompting a rebound in the Nikkei and lifting the TOPIX as well.
Against the backdrop of measures to stabilize the US bond market, demand for risk assets increased in Japan, sending the Nikkei Stock Average higher from the previous day. The Nikkei Stock Average closed at 66,216.79, while the TOPIX rose to 4,059.73.
At the start of this week, long-term borrowing costs in the US, Germany and Japan had reached high levels, but US Treasury yields fell sharply after the US Treasury announced that it would double the scale of its purchases of long-term bonds. This spilled over into the Japanese market and helped support its resilience.
By stock, gains were prominent, led by 住友金属鉱山, which rose 10.76%, followed by 住友製薬, up 8.48%, and 関西電力, up 8.37%. Among the decliners, あおぞら銀行 fell 3.11%, イビデン declined 2.87%, and 日本スチール dropped 2.20%.
Market participants cited falling interest rates as a factor driving the market and said buying had spread to stocks whose gains in AI and semiconductor-related names had lagged behind.