FX.co ★ Japanese Stocks Climb as Yields and Yen Retreat

The Nikkei 225 Index advanced by 0.8% to rise above the 38,000 mark, while the broader Topix Index saw a 0.6% increase to 2,786 on Wednesday. This marks the fourth consecutive day of growth in the market, propelled by decreases in both Japanese government bond yields and the yen, easing the pressure on equities. The rise follows news that Japan's Ministry of Finance intends to reduce the issuance of super-long-term bonds to manage the upward trend in yields. This announcement comes in the wake of last week's underwhelming 20-year bond auction, which recorded the lowest demand in over ten years. Japanese markets also drew positive sentiment from a robust performance on Wall Street overnight, as optimism grew when President Donald Trump agreed to delay implementing a proposed 50% tariff on the European Union, suggesting a potential easing of trade tensions. The technology sector spearheaded the rally, with noteworthy gains from companies such as Advantest, which rose by 3.7%, Disco at 1.7%, and Lasertec at 2.2%. Additionally, gains were widely shared across industrials, consumer sectors, and financial stocks.