Japan's Nikkei share gauge rallies as bond market jitters subside

Business Recorder reported that Japan's Nikkei share average climbed on Thursday as steps by US authorities to calm their bond market revived investor confidence and appetite for riskier assets. At the midday break, the Nikkei 225 index, a key benchmark, was up 1% at 65,982.49. Topix, the wider index, added 0.91%, lifting it to 4,048.72.

Earlier this week, long-term borrowing costs in America, Germany and Japan touched their highest levels in decades, as investors fretted over swelling public debt and inflation. Overnight, the US Treasury announced it would double the amount it repurchases in long-dated debt, a move that pushed American yields sharply lower and carried over to Japan. Nomura Securities equities strategist Wataru Akiyama said the drop in interest rates was the main force behind the day's trading.

Gainers outnumbered losers by a wide margin, as 175 stocks in the Nikkei 225 rose, 48 fell and 2 were flat. Sumitomo Metal Mining led the gainers with a 9.72% jump, while Kansai Electric Power climbed 8.09%, its strongest one-day rise since August 2024. On the downside, Rohm slipped 3.88%, while Ibiden and Sumco fell 3.40% and 3.18% respectively.