FX.co ★ Japanese Shares Close Flat as Bond Yields Rebound

On Wednesday, the Nikkei 225 and Topix indices closed with minimal changes, relinquishing their initial gains due to a rebound in Japanese government bond yields. This shift followed remarks from Bank of Japan Governor, Kazuo Ueda, during a parliamentary session. Ueda highlighted that variations in short- and medium-term interest rates wield a more immediate influence on economic activities compared to alterations in long-term yields. Nevertheless, he acknowledged that fluctuations in the longer end of the yield curve might affect shorter maturities, potentially leading to tighter financial conditions overall. This rise in yields dampened investor sentiment, restricting the earlier positive momentum in the stock market. Noteworthy decliners included Kawasaki Heavy Industries, which fell by 1.1%, Disco with a 0.9% decrease, and Sanrio, which dropped 5.6%. On a brighter note, substantial gains were noted for Metaplanet, up by 9.5%, Advantest which rose 1.6%, and Lasertec with an increase of 2.2%, thereby helping to mitigate wider market losses.