Yen Rebounded Ahead of Possible Intervention, Financial Stocks Led Gainers In Tokyo

Akira Ito
03 Sep, 2026
Tokyo

Japan's indexes edged higher, recouping some losses from previous sessions and tracking gains on Wall Street overnight. 

The Nikkei 225 Stock Average increased 0.4%, the broader TOPIX advanced 1%, and the yen strengthened to 157.77 against the U.S. dollar. 

Government bond yields hovered near multi-decade and multi-year highs worldwide as investors braced for prolonged borrowing costs. 

In the U.S., the benchmark 10-year Treasury yield edged slightly lower to 4.77%, while international markets saw a similar trend with U.K. gilts and Japanese government bonds trading near long-term highs.

International oil benchmarks marched higher after an exchange of airstrikes between the United States and Iran escalated geopolitical tensions in the Middle East. 

Brent crude futures rose to around $96 per barrel, while West Texas Intermediate hovered above $91 amid rising fears of supply disruptions through the critical Strait of Hormuz. 

A stronger yen weighed on the earnings outlook of Japan's export-heavy industries, and investors held out for the Bank of Japan to revise rates higher after the mid-September meeting. 

The yen advanced on speculation that authorities had conducted a rate check for foreign exchange transactions, signaling a possible intervention in the imminent future.  

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.4% to 64,575.29, and the broader TOPIX advanced 1% to 4,125.28. 

Tokyo Electron increased 1.2% to ¥53,750.0, Advantest Corp. edged up a fraction to ¥32,550.0, Kioxia Holdings advanced 0.8% to ¥51,390.0, and Taiyo Yuden Corp. gained 1.7% to ¥8,980.0. 

Financial stocks led gainers in Tokyo amid rising expectations of higher interest rates, and the yield on 10-year Japanese government bonds edged slightly lower to 2.97%. 

Mitsubishi UFJ Financial Group increased 2.5% to ¥3,776.0, Sumitomo Mitsui Financial Group advanced 2.5% to ¥7,148.0, and Mizuho Financial Group gained 2.2% to ¥8,865.0.