Tokyo stocks rise on broad buying after fall in Japan bond yields

Tokyo stocks experienced a significant rise on Thursday, driven by a broad range of sectors being bought as investor concerns eased following a decline in Japanese bond yields, which had reached a 30-year high. The Nikkei Stock Average ended the day up 890.37 points, or 1.36 percent, from the previous day's close at 66,216.79. The broader Topix index also saw an increase of 47.42 points, or 1.18 percent, reaching 4,059.73.

Among the top-tier Prime Market gainers, transportation equipment, electric power, gas, and pharmaceutical issues led the charge. The U.S. dollar strengthened to the mid-158 yen level in Tokyo, rebounding after a sharp decline that followed a fall in U.S. Treasury yields. This decline was a result of the U.S. Treasury Department's announcement that it would double its buybacks of long-term bonds.

A decrease in the yield on the 10-year Japanese government bond contributed to the underperformance of laggards such as automobile shares. Medical and service sector issues also saw increased buying during this period.

Global bond yields have been on the rise due to stalled progress towards peace in the Middle East, negatively impacting stock markets, including in Japan. Higher borrowing costs could potentially hinder corporate performance. Wataru Akiyama, a strategist at Nomura Securities Co., noted that while rising global bond yields are a concern, it is too early to predict a sustained decline in global bond yields.

Some buying pressure was also observed following the Nikkei's plunge of around 3,900 points over the previous two trading days. Additionally, some artificial intelligence- and semiconductor-related shares were sold as part of position adjustments.