Tokyo stocks end higher as yen weakens on report on bond issuance

The Mainichi

27-05-2025

TOKYO (Kyodo) -- Tokyo stocks erased earlier losses to close higher Tuesday, lifted by buying of export-oriented shares as the yen weakened following a report that Japan may consider reducing issuance of super-long bonds.
The 225-issue Nikkei Stock Average ended up 192.58 points, or 0.51 percent, from Monday at 37,724.11. The broader Topix index finished 17.58 points, or 0.64 percent, higher at 2,769.49.
On the top-tier Prime Market, gainers were led by nonferrous metal, insurance, and machinery issues.
The U.S. dollar briefly slipped to the lower 142 yen range in Tokyo, as speculation that the Bank of Japan may raise interest rates prompted yen buying after its chief, Kazuo Ueda, said the central bank will keep rates on an upward path if the economy and prices develop as expected.
The dollar later climbed to the mid-143 yen range, as the yen was sold after yields on super long-term Japanese government bonds fell, with the report fueling speculation that the Finance Ministry may cut issuance to stabilize the market, dealers said.
The Nikkei stock index was initially pressured by selling to lock in gains after advancing more than 500 points over the past two trading days.
However, the key indexes ended higher as export-linked auto and machinery issues were bought on the weaker yen, which increases exporters' overseas profits when repatriated.
Masahiro Yamaguchi, head of investment research at SMBC Trust Bank, said investors were waiting for fresh trading incentives after U.S. markets were closed Monday and U.S. President Donald Trump said he will delay 50 percent tariffs on imports from the European Union.
"Investors took a cue from the yen's depreciation amid a lack of other incentives," he said.