Japan Market Daily | Kabutaro & Friends

On July 3, 2026, the Nikkei 225 extended its gains to close up 218.41 yen at a fresh historic high of 72,434.39 yen. While the Tokyo market opened with muted fluctuations amid a shortened pre-Independence Day session on Wall Street, continuous buying in semiconductor-related shares supported the benchmark index. The TOPIX also reached a record high for the second consecutive session. In the FX market, the USD/JPY cross hovered in a historic weak-yen zone in the upper 161 yen range, driven by persistent demand for the greenback fueled by widening yield differentials and the Federal Reserve's hawkish policy outlook. On the macroeconomic front, the government's June consumer confidence survey released today showed a slight improvement in the consumer perception index. In the domestic bond market, the benchmark 10-year government bond yield rose to 1.090 percent, reflecting persistent market wariness over future rate hikes and a reduction in bond purchases by the Bank of Japan.