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.