Tokyo: Japanese shares rose on Friday, as rising bond yields supported banking and insurance stocks, while a weaker yen boosted automakers. Global investors are awaiting Federal Reserve Chairman Jerome Powell's speech later in the day for clues on the path of US monetary policy. According to Yemen News Agency, the broader Topix index rose 0.5 percent to 3,099.51, following a three-day losing streak. The Nikkei 225 index edged up just 0.1 percent to 42,636.67, with declines in Fast Retailing and Advantest weighing on the index. Insurance stocks were the best-performing sector on the Tokyo Stock Exchange, up 2.3 percent, followed by the banking sector, which advanced 1.4 percent. The rise in bond yields boosted expectations for revenue from investment and lending. The yield on benchmark 10-year Japanese government bonds rose to a 17-year high, tracking overnight gains in US Treasuries. The yen fell to a three-week low of 148.675 against the dollar, boosting the value of overseas revenues for Japanese automake rs and other exporters. Mazda, which relies heavily on the US market, gained nearly 3 percent, while Toyota rose 0.6 percent. In related economic news, core inflation in Japan slowed for the second straight month in July but remained above the Bank of Japan's 2 percent target, maintaining market expectations for another interest rate hike in the coming months. Japan's core consumer price index, which excludes fresh food, rose 3.1 percent year-on-year last month, government data showed on Friday. The increase was lower than the 3.3 percent increase in June, largely due to the underlying effect of higher energy prices last year after the end of government subsidies to curb fuel bills. Energy prices fell 0.3 percent, the first year-on-year decline since March of last year, but food inflation, excluding volatile fresh produce, accelerated to 8.3 percent in July from 8.2 percent in June, suggesting that rising living costs continue to weigh on households.
Saturday, August 22, 2026