TOKYO: Japan’s Topix share gauge reached a record high, the yen weakened and longer-dated bonds slid on Monday after Prime Minister Shigeru Ishiba’s resignation stoked speculation that his successor will raise government spending.
The broad Topix gauge leapt as much as 1.3 percent to an unprecedented 3,146.58. The Nikkei 225 index of blue chip shares gained 1.45 percent to 43,643.81, near its own record. The yen softened 0.4 percent to 148 versus the US dollar.
Japanese government bonds (JGBs) were resilient at first before falling late in the afternoon session, driving yields higher. The 20-year yield rose 3.5 basis points to 2.67 percent, while the 30-year yield jumped 6 basis points to 3.285 percent, matching the all-time high hit last week.
Yields on long-dated JGBs have surged of late due to global concerns about fiscal deficits and as pressure mounted on Ishiba from within his Liberal Democratic Party (LDP), while the Nikkei recently slipped from last month’s all-time high.