Tokyo stocks rose for the third straight day on rises in utilities and other share sensitive to domestic demand, while investors awaited earnings results from a major U.S. chipmaker.
The Nikkei Stock Average climbed 153.55 yesterday, or 0.48 percent, to close at 32,010. The S&P 500 was up 13.03 points, or 0.50 percent, at 2,277, a rise of 11.34 points, or 0.50 percent, on the Nasdaq Stock Market. The gainer was lead by iron and steel, nonferrous metal, and pulp and paper.
The U.S. dollar was slightly weakened on Monday after hovering in the upper 145 yen range for most of the day, supported by expectations of a growing interest rate gap between the United States and Japan following recent increases in long-term U.S. Treasury yields.
The value of the euro was announced on Tuesday at $1.0817 - 0819 and 157.26 - 30 yen against $1.0839 - 0849 and 158.24 - 34 yen in New York and $1.0925 - 0926 and 159.24 - 28 yen in Tokyo late Tuesday.
The yield of the benchmark 10-year Japanese bond rose 0.010 percent from yesterday's close to a fresh nine-year high of 0.675 percent.
There have been moves to experiment with rising long-term yields after the Bank of Japan revised its extremelyeasy monetary policy last month, signaling to investors that it would allow 10 - year yields to rise above a 0.5 percent cap and as high as 1.0 percent.
The Bank of Japan conducted routine bond-buying operations on Wednesday. The amount was the same as the previous time, despite some expectations it would increase its purchase level in an attempt to curb the rise in interest rates.
A rise in U.S. long-term interest rates would put upward pressure on Japanese government bond yields, with market participants increasingly cautious that the U.S. Federal Reserve Chair Jerome Powell may make a statement suggesting a prolonged period of U.S. interest rate hikes during a speech Friday.
The stock market saw strong support from utilities and land transportation shares, but broader movements remained muted as investors awaited earnings from Nvidia's chip giant.
A wait-and-see mood also took hold ahead of the Fed chairman's speech at the annual Jackson Hole symposium in the U.S. state of Wyoming.
While participants were reluctant to either actively buy or sell high-tech stocks ahead of Nvidia's earnings, stocks with less influence on the overall market were sought, said Yutaka Miura, senior technical analyst at Mizuho Securities Co.
Kansai Electric Power surged to 1,967, a gain of 76.0 yen, or 4 percent, in the utility sector. The Central Japan Railway (CJR) grew 400 yen, or 2.2 percent, to 18,360 yen, on Monday, after it announced a stock split aimed at expanding its investor base.
Department store shares jumped on expectations for a boost in inbound tourism amid the weakening yen. Isetan Mitsukoshi HoldingsMitsukoshi Holdings rose 31.0 yen, or 1.8 percent, to 1,722. 5 yen and Takashimaya was ahead of 39.5 yen, or 1.8 percent, at 2,264.