Japan Market Daily | Kabutaro & Friends

On July 4, 2026, while major financial markets were closed for Saturday, the global financial landscape adjusted to the lingering effects of Friday's market movements. With Wall Street and U.S. bond markets closed on Friday in observance of the Independence Day holiday, the Tokyo market entered the weekend on a strong note, where the Nikkei 225 had extended its gains on July 3 to close up 218.41 yen at a fresh historic high of 72,434.39 yen. In the FX market, steady demand for the greenback fueled by the Federal Reserve's hawkish stance and widening yield differentials kept the USD/JPY cross locked in a historical weak-yen zone in the upper 161 yen range to end the week. In the domestic bond market, the benchmark 10-year Japanese government bond yield maintained its elevated level at 1.090 percent due to lingering rate hike speculation, keeping market participants highly attentive to interest rate trends and currency depreciation ahead of the new trading week.