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Business Recorder
30-06-2025
- Business
- Business Recorder
Japan's Nikkei hits more than 11-month high after US stocks rally
TOKYO: Japan's Nikkei share average jumped to hit a more than 11-month high on Monday as investors' risk appetite was boosted after a strong rally in US equities, which was driven by hopes for trade talks and Federal Reserve's rate cuts. The Nikkei rose 1.64% to 40,809.82 by the midday break, hitting its highest level since July 17. The index rose for a fifth straight session. The broader Topix rose 0.96% to 2,867.82. A strategist at a domestic brokerage said a rally of US equities last week and hopes of Fed rate cuts, as well as easing tension in the Middle East helped investors to turn 'risk-on'. 'The Nikkei's gains are sharp and there will be some adjustment, but that will be very limited because Japanese stocks are still underperforming their global peers,' said Koichi Kurose, chief strategist, Resona Asset Management. Wall Street extended its rally on Friday, sending the S&P 500 and Nasdaq to all-time closing highs as trade deal hopes fueled investor risk appetite and economic data helped solidify expectations for rate cuts from the US Federal Reserve. In Japan, start-up investor SoftBank Group jumped 5% to become the biggest source for the Nikkei's gains. Japan's Nikkei climbs for fourth day on US-China trade framework; Hino plunges Chip-making equipment maker Tokyo Electron and chip-testing equipment maker Advantest rose 2.78% and 2.88%, respectively. 'There is an expectation that domestic spending may grow towards the end of the year as utility costs could become lower due to falling oil prices and a stronger yen,' said Kurose. All but two of the Tokyo Stock Exchange's 33 industry sub-indexes rose, with the precision machinery sector rising 2.21% to become the top percentage gainer. Medical equipment maker Olympus jumped 6% after falling in four straight sessions. The automaker sector inched down 0.6% after US President Donald Trump said in an interview broadcast on Sunday that Japan engages in 'unfair' automobile trade with the US
Yomiuri Shimbun
30-06-2025
- Automotive
- Yomiuri Shimbun
Japan's Nikkei Stock Average Hits More Than 11-Month High after US Stocks Rally
The Nikkei .N225 rose 1.64% to 40,809.82 by the midday break, hitting its highest level since July 17. The index rose for a fifth straight session. The broader Topix .TOPX rose 0.96% to 2,867.82. A strategist at a domestic brokerage said a rally of U.S. equities last week and hopes of Fed rate cuts, as well as easing tension in the Middle East helped investors to turn 'risk-on'. 'The Nikkei's gains are sharp and there will be some adjustment, but that will be very limited because Japanese stocks are still underperforming their global peers,' said Koichi Kurose, chief strategist, Resona Asset Management. Wall Street extended its rally on Friday, sending the S&P 500 and Nasdaq to all-time closing highs as trade deal hopes fueled investor risk appetite and economic data helped solidify expectations for rate cuts from the U.S. Federal Reserve. In Japan, start-up investor SoftBank Group 9984.T jumped 5% to become the biggest source for the Nikkei's gains. Chip-making equipment maker Tokyo Electron 8035.T and chip-testing equipment maker Advantest 6857.T rose 2.78% and 2.88%, respectively. 'There is an expectation that domestic spending may grow towards the end of the year as utility costs could become lower due to falling oil prices and a stronger yen,' said Kurose. All but two of the Tokyo Stock Exchange's 33 industry sub-indexes rose, with the precision machinery sector .IPRCS.T rising 2.21% to become the top percentage gainer. Medical equipment maker Olympus jumped 6% after falling in four straight sessions. The automaker sector .ITEQP.T inched down 0.6% after U.S. President Donald Trump said in an interview broadcast on Sunday that Japan engages in 'unfair' automobile trade with the U.S.
Japan Times
06-06-2025
- Business
- Japan Times
Pressure mounts for Japan to adjust bond sales as soon as July
Expectations in the market are intensifying that the government may adjust debt issuance as soon as next month by increasing sales of shorter maturity securities and trimming offerings of longer-dated ones. Japan's yields are hovering at historical highs after a series of auctions in recent weeks that saw poor demand. Thursday's 30-year bond sale saw its weakest demand ratio since 2023 but yields fell as markets began pricing in expectations the Finance Ministry may cut issuance to cap the recent surge in longer-term debt yields. "The forward-looking attitude that the Finance Ministry is moving toward reducing issuance helped out the auction results and led to the buying of bonds,' said Takashi Fujiwara, chief fund manager at Resona Asset Management in Tokyo. "But if the Finance Ministry's issuance reduction is disappointing, selling pressure may increase again from July.' Long-term borrowing costs are surging across the globe amid growing concerns over widening government budget deficits. Recent auctions of longer-maturity debt in Japan have drawn tepid demand, ramping up pressure on the government to rethink issuance plans at a time when the central bank is reining in its massive bond purchases. The timing coincides with the U.S. Treasury Department's call to the Bank of Japan to raise interest rates to strengthen the yen. The BOJ holds its next policy meeting on June 16-17, when the board is widely expected to keep the benchmark rate unchanged. Speculation that the finance ministry may adjust issuance increased after it sent a questionnaire to market participants last week that asked for their views on issuance and the current market situation. The Finance Ministry is set to meet with primary dealers on June 20, according to people familiar with the matter, just days after the BOJ also reviews its bond buying plans. "We see room for the central bank to reduce bond buying in the 10-year and below segments and either increase or maintain the size of its bond buying at the super-long segment to boost investor confidence,' said Justin Heng, HSBC's APAC rates strategist, in a note. "We think that some optimism is emerging in the bond market, as super-long bonds have been resilient, despite a weak 30-year JGB auction.' The 30-year bond yield fell half a basis point to 2.88% on Friday, down from a peak of 3.185% struck last month, the highest level since it was sold. The 40-year bond yield fell 1.5 basis points to 3.055%, and the 20-year rate dropped 2 basis points to 2.335%. "If the Finance Ministry doesn't deliver meaningfully on those expectations, markets could test the upper bound of yields again,' said Charu Chanana, chief investment strategist at Saxo Markets. To be sure, reshuffling the bond maturity mix won't solve Japan's huge debt load, which is the heaviest among major developed countries. As interest rates rise, it may also lead to rollover risk and increase the government's financing costs. Resona Asset Management's Fujiwara said that the market is hoping for an issuance reduction for super-long bonds of around ¥450 billion per sale, or at least ¥300 to ¥400 billion. JPMorgan Securities Japan also said in a report this week that attention will focus on the change in issuance plans, and they estimate that the issuance of super-long bonds will be reduced by ¥250 to ¥450 billion per month from July. "If the size of the issuance reduction is only about ¥100 billion for the 20-year, 30-year and 40-year bonds, the sense of disappointment is likely to intensify,' said Fujiwara.
