TOKYO: Japanese shares rose on Friday, with higher bond yields buoying banks and insurers and a weaker yen lifting automakers, while investors globally awaited Federal Reserve Chair Jerome Powell’s speech later in the day for hints on the path for US policy.
The broad Topix index ended the day 0.6% higher at 3,100,87, snapping a three-day losing run.
The more tech-heavy Nikkei managed just a 0.05% rise to 42,633.29, with declines for heavyweights Fast Retailing and Advantest weighing on the overall index.
Insurance was the top performing sector among the Tokyo Stock Exchange’s 33 industry groupings, gaining 2%, followed by a 1.7% advance for securities firms and a 1.5% gain for banking. Higher bond yields boost the outlook for revenue from investment and lending.
The benchmark 10-year Japanese government bond yield rose to a 17-year peak, tracking an advance in US Treasury yields overnight after strong purchasing manager surveys gave investors more confidence in the resilience of the US economy.
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