Japanese shares surged on Thursday, snapping back from recent weakness as calmer bond markets and a rebound in US technology stocks fueled optimism. Banks and electronics led the rally, helping both major benchmarks log their biggest daily gains in weeks.
The Topix Index climbed 1% to close at 3,080.17, while the Nikkei 225 advanced 1.5% to 42,580.27. It marked the strongest performance for both gauges since mid-August.
The relief came after long-term bond yields in Japan and abroad, which had spiked earlier in the week, eased back. Solid demand for a 30-year Japanese government bond auction further reassured investors, signaling stability in debt markets.
Yutaka Miura Said,
“The selling pressure we saw yesterday from the rise in long-term bond yields has calmed, allowing investors to repurchase stocks,”
senior technical analyst at Mizuho Securities. He added that a pause in yen selling, which weakened against the dollar on concerns over domestic political instability, also supported sentiment.
Banks and Tech Drive Gains
Bank shares, which were hammered on Wednesday over fears Prime Minister Shigeru Ishiba’s fragile grip on power could delay a potential Bank of Japan rate hike, became the day’s biggest contributors to the Topix’s rally.
Another source of momentum came from Wall Street. The Nasdaq snapped a two-day losing streak and gained over 1% on Wednesday, driving renewed appetite for tech-linked names in Tokyo.
Miura Said,
“The rebound in large-cap US tech stocks is also fueling repurchasing,”
SoftBank Group, Fujikura, and Advantest were among the standout performers on the Nikkei.
Concerns Linger Despite Rebound
Still, analysts remain cautious about whether the bounce will last. Miura noted that lingering doubts about Ishiba’s leadership could weigh on investor confidence. “Investors aren’t going truly risk-on just yet,” he said.
One notable outlier in Thursday’s rally was Nidec Corp., whose shares plunged 22% after the company disclosed evidence that executives may have been involved in accounting irregularities.
For now, though, the broader market’s rebound suggests that investors are finding reasons to step back in even if uncertainties remain on the horizon.x
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