Japan’s Nikkei ended higher

Japan’s Nikkei index rose on Monday, tracking Wall Street, and the financial services sector also rose to give the index an additional boost, with Japanese government bond yields recording a new peak in 10 years.

After declining at the end of last week, the main index rose again, after gains in US stocks on Friday evening amid news of improved consumer expectations regarding inflation.

The Nikkei index closed 0.66% higher at 38,900.02 points, and the broader Topix index rose 0.87% to 2,766.36 points amid a decline in trading volume due to official holidays in the United States and Britain.

At the same time, markets continued to focus on the Bank of Japan reducing its bond purchases and increasing interest rates, as Bank of Japan Governor Kazuo Ueda and his deputy Shinichi Yoshida spoke during the morning hours in Asia and government bond yields continued to rise.

Financial services stocks, which tend to benefit from a higher interest rate environment, rose in the afternoon session in Asia in response.

The insurance sector index rose 3.3%, leading gains among the 33 sub-indices on the Tokyo Stock Exchange.

The Nikkei index touched the closely watched level of 39,000 points this month, but it is facing difficulties in maintaining this key range amid uncertainty about monetary policy at home and abroad, in addition to cautious expectations for the revenues of Japanese companies.

The index hit an all-time high of 41,087.75 points on March 22, but fell again the following month.

Chip-related stocks rose significantly on Monday, after the strong performance of their American counterparts, benefiting from Nvidia’s profits last week.