Japan’s Nikkei 225 and Topix indices each rose 0.2% on Thursday, closing at 65,271 and 4,055, respectively, snapping a two-session losing streak after reversing earlier losses. Equities drew support as the recent rally in oil prices and global bond yields stalled, easing pressure on risk assets even as worries over inflation and higher interest rates persisted.
The Bank of Japan is still widely expected to raise borrowing costs next week. Board member Kazuyuki Masu signaled that the central bank intends to continue tightening policy and scaling back monetary support as underlying inflation moves closer to its 2% target.
Investors also closely monitored the yen, which strengthened to its highest level in nearly seven months, stoking concerns about profit margins at Japan’s export-oriented firms. Technology and banking shares led the rebound, with notable gains in Kioxia Holdings (up 1.9%), Advantest (3.3%), Taiyo Yuden (4.8%), Mitsubishi UFJ (1.7%) and Sumitomo Mitsui (1.5%).
