The Nikkei 225 Index Closes 1.26% Higher

The Nikkei 225 Index rose 1.3% to close at 66,364 on Friday, extending its winning streak to five sessions as oil prices retreated and the global bond selloff eased, offering some relief to equities. Oil prices declined on reports that the US and Iran were exploring a phased agreement that could reopen the Strait of Hormuz and lift a US blockade on Iranian ports. Global bond yields also stabilized after a sharp two-day rally, while Japan’s 10-year government bond yield pulled back slightly from its highest level since 1996. Elsewhere, Presidents Donald Trump and Xi Jinping concluded their bilateral talks in Washington, with Trump describing the meeting as “great.” Technology stocks led the gains, with Kioxia Holdings rising 2.2%, Advantest gaining 2.8% and Ibiden Co advancing 4.2%. Financial stocks also outperformed, including Mitsubishi UFJ, up 4%, Sumitomo Mitsui, up 3.6%, and Mizuho Financial, up 4.2%.

The Nikkei 225 Index gained 827 points or 1.26 percent on Friday to close at 66341 points. Gains were led by Komatsu (5.19%), Resona Holdings (4.82%) and Shizuoka Bank (4.68%).

The Nikkei 225 Index climbed more than 1% to above 66,000 on Friday, extending gains to a fifth consecutive session even as global bond yields continued to rally on rising inflationary risks and mounting fiscal concerns. On Thursday, the 10- and 30-year US Treasury yields rose to their highest levels since 2007 and 2004, respectively, while Japan’s 10-year yield climbed to its highest level since 1996. Meanwhile, oil prices eased on 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, helping relieve some pressure on equities. Investors also continued to monitor US-China negotiations that could pave the way for new trade agreements. Technology and banking stocks led the gains, with Kioxia Holdings rising 1.8%, Advantest gaining 1.3%, Ibiden Co advancing 2.7%, Mitsubishi UFJ up 2%, and Sumitomo Mitsui climbing 2.5%.