FX.co ★ Japanese Shares Track Wall Street Higher

The Nikkei 225 Index rose 0.4% to above 64,500, while the broader Topix Index advanced 1.2% to 4,130 on Thursday, recovering part of the previous session’s losses and tracking overnight gains on Wall Street as a decline in global bond yields offered some relief. Oil prices also paused their rally after President Donald Trump said the latest attacks on Iran would be short-lived, easing inflation concerns.

At the same time, traders closely monitored the yen after its sharp rally amid speculation about a rate check and potential official intervention. A stronger yen pressures earnings for Japan’s export-oriented sectors and makes domestic assets more expensive for foreign investors. Financial stocks led the rebound, with notable gains from Mitsubishi UFJ (2.6%), Sumitomo Mitsui (2.7%) and Mizuho Financial (2.3%).