Japan's Indexes Rebounded 1% and Bond Yields Hovered at 17-Year Highs

Akira Ito
04 Sep, 2025
Tokyo

Japan's stock market indexes rebounded from losses in the previous session, following a tech-driven rally in overnight trading in New York. 

The Nikkei 225 Stock Average gained 1.5%, and the broader Topix advanced 1% amid a rebound in artificial intelligence-linked stocks. 

Stock market gains were limited, with the yield on 10-year Japanese government bonds hovering near a 17-year high at 1.61%.

Tech stocks rallied after the Google parent, Alphabet Inc., avoided a harsher sentence from a U.S. federal judge, which could have led to the breakup of the company.

The ruling allows Alphabet to keep its Chrome browser but prevents the company from striking exclusive search deals. 

Moreover, the court's ruling permits the company to share search data with partners and customers and paves the way for licensing of AI products to mobile device makers. 

In overnight trading, Alphabet Inc. soared 9% to $231.10, and Apple Inc. gained 3.8% to $238.47.

On the domestic economic front, investors are awaiting wage data on Friday.

The yen weakened to 148.17 against the U.S. dollar after Bank of Japan Governor Kazuo Ueda reiterated the central bank's stance to hike rates if economic growth and price inflation develop as expected. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 1.5% to 42,580.0, and the broader Topix added 1% to 3,077.45. 

Tokyo Electron added 0.7% to ¥20,075.0, Advantest Corp. increased 4.6% to ¥11,190.0, and Lasertec Corp. fell 0.3% to ¥14,950.0. 

Sumitomo Mitsui Financial Group gained 2.7% to ¥4,061.0, Mitsubishi UFJ Financial Group advanced 2% to ¥2,246.0, and Mizuho Financial Group increased 2.4% to ¥4,800.0.