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Japan's Nikkei climbs on lower US yields, softer yen
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Japan's Nikkei climbs on lower US yields, softer yen
May 26, 2025 1:07 PM

TOKYO, May 23 (Reuters) - Japan's Nikkei share average

climbed on Friday, supported by falling U.S. Treasury yields and

a weaker yen, although the index is on track to break its

four-week winning streak.

The Nikkei was up 0.8% at 37,280.84 by the midday

break, but has lost 1.25% so far this week.

The broader Topix climbed 0.81% to 2,739.13, though

on course to close the week 0.85% lower.

"Rises in U.S. Treasury yields have paused and that buoyed

appetite for Japanese stocks," said Shuutarou Yasuda, a market

analyst at Tokai Tokyo Intelligence Laboratory.

"But for the index to rise higher next week and beyond, it

needs some new catalysts," he said.

U.S. Treasury yields fell overnight after a recent selloff

drew some buyers at more attractive levels, with 30-year yields

reaching the highest in 19 months earlier in the session.

The U.S. dollar rebounded after recent losses, pushing the

yen down 0.27% to 143.575, after it had briefly strengthened to

142.8 overnight.

A weaker Japanese currency tends to boost shares of

exporters, as it increases the value of overseas profits in yen

terms when firms repatriate them to Japan.

The Nikkei has fully recovered its losses since U.S.

President Donald Trump's April 2 tariff announcement, climbing

25% from its April 7 low to a peak on May 13.

"Investors turned cautious about the sharp gains, and sold

stocks, but they bought stocks today as they were relieved to

see the peak of the Nikkei," said Takuro Hayashi, head of the

investment research department at IwaiCosmo Securities.

Among individual shares, Uniqlo-brand owner Fast Retailing ( FRCOF )

rose 1.33% to become the biggest boost to the Nikkei.

Chip-related Tokyo Electron ( TOELF ) and Advantest ( ADTTF ) rose

0.68% and 1.92%, respectively.

All but four of the Tokyo Stock Exchange's 33 industry

sub-indexes rose, with the nonferrous metal sector

jumping 3.5% to become the top performer.

Cable makers, a gauge for AI investments, advanced, with

Fujikura ( FKURF ) and Furukawa Electric ( FUWAF ) up 5.17% and

4.36%, respectively.

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