Japan’s Nikkei Stock Average Rises for Third Session as Government Backs Debt Market (UPDATE 1)

Reuters

13:06 JST, June 10, 2025 (updated at 16:50 JST)

TOKYO, June 10 (Reuters) – Japan’s Nikkei share average extended its rally to a third session on Tuesday, lifted by news that the government is exploring a potential buyback of long-dated bonds to stabilize the market and contain rising yields.

The Nikkei 225 Index closed 0.3% higher, trimming an earlier advance of 1.1%. The broader Topix ended flat.

Domestic shares have increasingly moved in tandem with Japanese government bonds (JGBs) amid rising concerns over the country’s fiscal health and borrowing costs.

Finance Minister Katsunobu Kato said the government will work to ensure confidence in the JGB market, a day after Reuters reported the finance ministry was considering buying back some super-long-dated bonds after a recent surge in yields.

“We see lower interest rates and a stable dollar-yen exchange rate as supporting the Japanese stock market today,” said Maki Sawada, an equities strategist at Nomura Securities.

There were 133 advancers on the Nikkei against 87 decliners.

Shares pared gains in the afternoon as the yen strengthened, sapping demand for export-reliant shares.

The largest percentage gainers on the index were Sumitomo Pharma, which jumped 8.8%, followed by cosmetics giant Shiseido, gaining 6.3%.

Tokyo Gas, down 3.8%, and Mitsui Mining and Smelting Co, down 2.9%, were the biggest losers.

Space startup ispace, which saw its second moon lander crash into the lunar surface last week, rebounded 10.3% after falling by their daily limit for two straight sessions.