Tokyo stocks rebound on firm chip issues amid lower bond yields

The Mainichi

23-05-2025

TOKYO (Kyodo) -- Tokyo stocks rebounded Friday, driven by the buying of semiconductor-related issues amid declines in long-term Japanese interest rates, but gains were trimmed by a stronger yen hurting some exporters.
The 225-issue Nikkei Stock Average ended up 174.60 points, or 0.47 percent, from Thursday at 37,160.47. The broader Topix index finished 18.43 points, or 0.68 percent, higher at 2,735.52.
On the top-tier Prime Market, gainers were led by nonferrous metal, machinery and insurance issues.
The U.S. dollar dropped to the lower 143 yen level in Tokyo amid lingering worries about the deterioration of U.S. fiscal health due to President Donald Trump's tax cut plan, dealers said.
Stocks were boosted by heavyweight chip shares that tracked overnight gains by the tech-heavy U.S. Nasdaq index, while worries about higher borrowing costs eased after the yield on the benchmark 10-year Japanese government fell, brokers said.
However, gains were capped as some export-oriented machinery and electronics issues were sold on the firmer yen, which decreases exporters' overseas profits when repatriated.
Japanese Prime Minister Shigeru Ishiba and U.S. President Donald Trump agreed in phone talks earlier in the day to explore holding a face-to-face meeting in June as ministerial-level tariff negotiations continue, but its impact on the market was limited, brokers said.
"A wait-and-see mood prevailed ahead of a three-day weekend in the United States, while investors are waiting for the outcome of ongoing Japan-U.S. tariff talks," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.