Japanese stock markets continued their upward trend for the third consecutive day, buoyed by the depreciation of the yen. This shift is largely attributed to stronger-than-expected employment data from the United States, underscoring the resilience of the U.S. economy.
The Nikkei 225 index closed with a gain of 1.8%, reaching 39,332.74 points, while the TOPIX index rose by 1.7% to 2,739.39 points. Export stocks, particularly automakers, contributed significantly to this rise in the indexes.
The yen reached a low of 149.13 against the U.S. dollar, marking the weakest level since mid-August. On the currency front, it had already fallen over 1% in the previous week.
The TOPIX Banks index saw a 3.9% increase driven by rising yields on Japanese government bonds. The benchmark 10-year Japanese government bond yield reached a one-month high, aligning with movements in the U.S. bond market. Major financial stocks saw significant gains, with Mitsubishi UFJ Financial Group (MUFG, Financial) rising 3.5% and Mizuho Financial Group (MFG) gaining 4.9%.
Recent data from the U.S. showed that non-farm payrolls increased by 254,000 in September, the highest in six months, along with a dip in the unemployment rate. This has led to declines in U.S. Treasury bonds and prompted traders to reassess expectations regarding the size of the next rate cut by the Federal Reserve.
