Japan's Nikkei reaches 6-week peak, rising bond yields lift financials

  • Reuters
  • Stock Market News
Japan's Nikkei reaches 6-week peak, rising bond yields lift financials

By Shinichi Saoshiro

TOKYO, Sept 10 (Reuters) - Japan's Nikkei reached a six-week high on Tuesday, with a weaker yen lifting exporters and a bounce in bond yields buoying financial companies.

At 0107 GMT the Nikkei share average .N225 was up 0.42% at 21,408.44 points, after touching 21,438.35, its highest since Aug. 1.

There were 166 advancers on the Nikkei index against 56 decliners.

Shares of exporting automakers rose as the yen slipped to its lowest level since early August against the dollar.

Toyota Motor Corp 7203.T added 1%, Honda Motor Co 7267.T climbed 1.6% and Subaru 7270.T gained 0.9%.

Nissan Motor Co 7201.T advanced 3.5%, outperforming its peers after news that company CEO Hiroto Saikawa will resign, bowing to pressure after he admitted to being improperly overpaid. UFJ Financial Group 8306.T gained 3.5%, Mizuho Financial Group 8411.T rose 2.6% and Sumitomo Mitsui Financial Group 8316.T climbed 2.7% thanks to a rebound in bond yields, which are expected to reinforce banks' profitability.

Yields of major government bonds pulled back sharply from recent lows as risk appetite improved and lessened investor demand for safe-haven debt.

The broader Topix .TOPX rose 0.4% to 1,557.76.

The stocks that gained the most among the top 30 core names in Topix were Mitsubishi UFJ Financial Group, followed by SoftBank Group Corp 9984.T , which rose 2.7%.

The worst performers in the Topix 30 were Mitsubishi Estate Co 8802.T , which fell 1.5%, followed by Central Japan Railway Co's 9022.T loss of 1.4%. (Editing by Kim Coghill)

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