Japan's Nikkei climbs on lower US yields, softer yen
TOKYO: Japan's Nikkei share average climbed on Friday, supported by falling US Treasury yields and a weaker yen, although the index is on track to break its four-week winning streak.
The Nikkei was up 0.8% at 37,280.84 by the midday break, but has lost 1.25% so far this week. The broader Topix climbed 0.81% to 2,739.13, though on course to close the week 0.85% lower.
'Rises in US Treasury yields have paused and that buoyed appetite for Japanese stocks,' said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
'But for the index to rise higher next week and beyond, it needs some new catalysts,' he said.
US Treasury yields fell overnight after a recent selloff drew some buyers at more attractive levels, with 30-year yields reaching the highest in 19 months earlier in the session.
The US dollar rebounded after recent losses, pushing the yen down 0.27% to 143.575, after it had briefly strengthened to 142.8 overnight.
A weaker Japanese currency tends to boost shares of exporters, as it increases the value of overseas profits in yen terms when firms repatriate them to Japan.
The Nikkei has fully recovered its losses since US President Donald Trump's April 2 tariff announcement, climbing 25% from its April 7 low to a peak on May 13.
Japan's Nikkei falls to two-week low after heavy sell-off of US stocks, bonds
'Investors turned cautious about the sharp gains, and sold stocks, but they bought stocks today as they were relieved to see the peak of the Nikkei,' said Takuro Hayashi, head of the investment research department at IwaiCosmo Securities.
Among individual shares, Uniqlo-brand owner Fast Retailing rose 1.33% to become the biggest boost to the Nikkei.
Chip-related Tokyo Electron and Advantest rose 0.68% and 1.92%, respectively.
All but four of the Tokyo Stock Exchange's 33 industry sub-indexes rose, with the nonferrous metal sector jumping 3.5% to become the top performer.
Cable makers, a gauge for AI investments, advanced, with Fujikura and Furukawa Electric up 5.17% and 4.36%, respectively.
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