Global Markets | Japan’s Nikkei rises on tech rally, stronger yen lifts JGBs
The Nikkei closed 0.38% higher at 59,513.12. It, however, dipped 0.3% for the week, snapping a third straight week of gains.
The broader Topix reversed early declines to end 0.04% higher at 3,728.73 and inched up 0.3% for the week.
A stronger yen eased inflation concerns, helping the yield on the 10-year Japanese government bond (JGB) to slip to 2.5% from a 29-year peak of 2.535% hit in the previous session.
Bond prices move inversely to yields.
Japan intervened to prop up the yen against the U.S. dollar on Thursday, its first official currency action in nearly two years, sources told Reuters, sending the Asian currency higher by as much as 3%.
Top currency diplomat Atsushi Mimura continued his warnings on Friday that speculative moves persist in markets, a clear signal that Tokyo stands ready to intervene to shore up the yen.”Some market participants expect the Bank of Japan to raise rates soon to maximise the effect of the currency intervention,” said Miki Den, senior Japan rates strategist at SMBC Nikko Securities.
“So the risk of the BOJ falling behind the curve retreated and appetite for longer-dated bonds was boosted,” he said.
Yields on super-long ends also fell on Friday after spiking in the previous session, with the 20-year JGB yield slipping 2.5 basis points to 3.37% and the 30-year bond yield down 2 bps at 3.715%.
Among individual stocks, Tokyo Electron jumped 6.89% after the chip-making equipment maker flagged a 36% gain in net profit for the six months ending September.
SoftBank Group rose 3.93%.
Sumitomo Corp surged 17% after announcing a higher annual net profit and the sale of a nickel project in Madagascar.
Mitsubishi Corp jumped 4.59%.
