FX.co ★ Japanese Shares Gain Despite Bond Rout

The Nikkei 225 Index rose 0.6% to around 65,900 on Friday, advancing for a fifth straight session even as global bond yields climbed on heightened inflation risks and growing fiscal concerns. On Thursday, yields on 10- and 30-year US Treasuries reached their highest levels since 2007 and 2004, respectively, while Japan’s 10-year government bond yield hit its highest point since 1996.

At the same time, oil prices retreated amid reports that the US and Iran were considering a phased agreement that could reopen the Strait of Hormuz and lift a US blockade on Iranian ports, easing some of the pressure on equity markets. Investors also remained focused on US-China talks that could lay the groundwork for new trade agreements.

Gains were led by technology and banking shares, with Kioxia Holdings up 1.8%, Advantest rising 1.3%, Ibiden Co advancing 2.7%, Mitsubishi UFJ gaining 2%, and Sumitomo Mitsui climbing 2.5%.