Japan’s 10-year government bond yield climbed back above 2.8% on Wednesday, rebounding from multi-month lows as demand for safe-haven sovereign debt eased amid improving sentiment toward artificial intelligence–related stocks. The sector’s outlook was further bolstered by South Korean chipmaker SK Hynix, which reported strong third-quarter earnings and announced higher shareholder returns on the back of AI-driven profits.
At the same time, investors are focusing on this week’s Bank of Japan policy meeting. While interest rates are widely expected to be left unchanged, officials may hint at a possible rate hike in December in response to ongoing inflationary pressures. Recent data showed that a key gauge of inflation in Japan’s services sector rose 3.7% year over year in September, its highest level since June 2024, as labor costs, transportation expenses, and fuel prices remained elevated.