Weakening Yen and Bond Yields Keep Stock Rally In Check In Japan

Akira Ito
28 May, 2025
Tokyo

Stock market indexes in Japan extended gains for the fourth consecutive session, the yen weakened, and bond market yield edged lower, easing pressure on stocks. 

The Nikkei 225 Stock Average inched higher 0.3%, and the Topix index edged up 0.4% to 2,781.55, following gains in overnight trading in New York. 

The S&P 500 index jumped 2%, and the Nasdaq Composite advanced 2.5% after investors returned from a three-day weekend in recognition of Memorial Day. 

Japan's government bond yields edged slightly higher, snapping a three-day losing streak after the Bank of Japan Governor Kazuo Ueda addressed parliament. 

Japan's 10-year government bond yield hovered near 1.5% after a local report suggested that the Ministry of Finance is considering paring back the issuance of super-long bonds to stem the rising yields. 

The move came after last week's 20-year government bond auction drew the weakest interest in more than a decade, and anxieties remained high for the upcoming 40-year government bond auction. 

The yield on the 20-year bond traded at 2.41% and the 40-year bond at 3.32%. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average edged up 0.3% to 37,867.16, and the broader Topix index added 0.4% to 2,781.55. 

Technology, financial, retail, and consumer-focused stocks led market gainers in Tokyo. 

Advantest Corp. edged up 0.3% to ¥7,235.0, Disco Corp. declined 0.3% to ¥33,710.0, and Tokyo Electron inched higher 0.3% to ¥23,280.0. 

Seven & I Holdings inched up 0.3% to ¥2,168.50, Fast Retailing Co. declined 0.2% to ¥47,210.0, Takashimaya Co. Ltd. edged higher 0.4% to ¥1,162.50, and Isetan Mitsukoshi advanced 1.6% to ¥2,202.50.