The Nikkei 225 Index rose 1.3% to move back above 66,000, while the broader Topix Index gained 0.8% to 4,045 on Thursday, ending a two-day losing streak. Japanese equities followed Wall Street higher as global bond yields retreated from multi-year peaks.
The rebound in risk assets came after the US Treasury Department announced it will more than double buybacks of 10-, 20-, and 30-year securities in the coming months. That move followed a jump in the 30-year Treasury yield to its highest level since 2007 earlier in the week. In Japan, the 10-year government bond yield also eased to around 2.84%, after touching a 30-year high of 2.95% earlier this week.
On the macroeconomic front, data showed Japan’s trade deficit widened sharply in July as imports surged to a record, driven largely by higher crude oil purchases. Export growth, however, remained solid, underpinned by strong overseas demand for AI-related semiconductors.
Market gains were led by major index constituents, including Kioxia Holdings (up 3.8%), Advantest (1.8%), SoftBank Group (3.2%), Nintendo (3.2%), and Toyota Motor (3%).
