Japan Market Daily | Kabutaro & Friends

On July 2, 2026, the Nikkei 225 rebounded to close up 783.28 yen at 72,215.98 yen. Following overnight gains across major Wall Street indexes, buying dominated the Tokyo market from the opening bell, particularly centering on high-tech and automotive shares. Continuous inflows into leading semiconductor stocks, driven by expanding demand for generative AI and data centers, significantly pushed the benchmark higher. The TOPIX also advanced by 35.12 points to 4,137.94. In the FX market, the USD/JPY cross remained locked in a historic weak-yen zone around 161.80 yen, sustained by persistent greenback demand amid expectations of prolonged high interest rates by the Federal Reserve and widening yield differentials. In the domestic bond market, the yield on the benchmark 10-year government bond rose to 1.085 percent, reflecting lingering market speculation over future interest rate hikes by the Bank of Japan.