The Nikkei 225 Index Closes 0.26% Lower

Japan’s Nikkei 225 and Topix indexes each gained 0.2% on Thursday, closing at 65,271 and 4,055, respectively, reversing earlier declines and ending a two-session losing streak. Equities found some relief as the recent surge in oil prices and global bond yields lost momentum, easing pressure on risk assets despite persistent concerns over inflation and higher interest rates. However, the Bank of Japan remains widely expected to raise borrowing costs next week, with board member Kazuyuki Masu indicating that the central bank will keep tightening policy and reduce monetary support as underlying inflation approaches its 2% target. Investors also remained focused on the yen, which climbed to its strongest level in nearly seven months, raising concerns over earnings for Japan’s export-oriented companies. Technology and banking stocks drove the recovery, led by gains in Kioxia Holdings (1.9%), Advantest (3.3%), Taiyo Yuden (4.8%), Mitsubishi UFJ (1.7%) and Sumitomo Mitsui (1.5%).

The Nikkei 225 Index decreased 170 points or 0.26 percent on Thursday to close at 64973 points. The decline was led by Mitsui Kinzoku (-6.18%), Japan Steel Works (-6.04%) and Nintendo Co (-5.32%). On the upside, the strongest performers were Sharp Corpor (5.40%), Taiyo Yuden (4.57%) and T&D Holdings (3.36%).

The Nikkei 225 Index declined 1% to below 64,600, while the broader Topix Index fell 0.65% to 4,020 on Thursday, extending losses for a third consecutive session as elevated oil prices fueled inflation concerns and increased expectations for near-term interest rate hikes. Japanese shares also followed overnight declines on Wall Street as US Treasury yields surged after the Treasury Department announced plans to buy back up to $6 billion in longer-term debt, disappointing some investors who had anticipated a more substantial increase. Meanwhile, investors continued to track the yen after the currency strengthened to a near seven-month high. Notable declines were recorded among technology and consumer stocks, including Fujikura (-4.4%), Ibiden Co (-3.1%), Furukawa Electric (-4.9%), Nintendo (-3.8%) and Fast Retailing (-1.5%).