FX.co ★ Japanese Shares Rise After Inflation Data

The Nikkei 225 Index advanced by 0.8% to surpass the 37,200 mark, while the broader Topix Index increased by 0.6% to reach 2,733 on Friday. This movement marked a recovery from the previous session's losses as investors digested the latest inflation data. In April, Japan's headline inflation remained consistent at 3.6%, but the core inflation rate surpassed expectations, rising to 3.5%, its highest in over two years. This development bolsters the anticipation that the Bank of Japan will persist in tightening its monetary policy due to enduring inflationary pressures. Additionally, investor sentiment was lifted by declining US Treasury yields, with the 10-year yield moving back towards 4.5% after momentarily exceeding 4.6% on Thursday. Prominent gainers included major industrial and technology stocks such as Mitsubishi Heavy Industries, which rose by 2.3%, Fujikura by 3.4%, Disco by 1.0%, Advantest by 2.5%, and Tokyo Electron by 1.3%.