FX168 Financial News (Asia Pacific) News On Monday (May 27), Japan's Nikkei Average followed a slight increase in the US stock market. Meanwhile, yields on Japanese government bonds hit a 10-year high, and financial stocks rose, bringing an additional boost to the index.

By the close, the Nikkei Index closed up 0.66% to 38,900.02 points, while the broader Tokyo Stock Exchange Topix Index closed up 0.87% to 2766.36 points. Affected by US and UK public holidays, trading in the Asian market was weak. #日本市场 #

Chip stocks rose sharply on Monday, after US chip stocks performed strongly last week, supported by Nvidia (Nvidia) earnings reports. Advantest shares, of which Nvidia is one of its customers, rose 1.4%, while shares of SoftBank Group (SoftBank Group), a startup investor focused on artificial intelligence, rose 1.1%.

Insurance company Tokio Marine Holdings (Tokio Marine Holdings) rose 3.7%.

Among other weighted stocks, Uniqlo's parent company Rapid Sales rose 1.3%, and Toyota Motor rose 1.7%.

Although the Nikkei Index hit the high-profile 39,000 mark this month, it is difficult for the index to maintain a critical range due to uncertainty about domestic and foreign monetary policies and conservative revenue prospects for Japanese companies.

On March 22, the index rose to an all-time high of 41,087.75 points, but declined somewhat over the following month and remained stagnant in the range well below 40,000 points, hit by multiple concerns about a weak yen, sluggish economy, and weak consumer spending.

Although this has brought some negative factors in the short term, Goldman Sachs analysts said that optimism about eventually raising profit expectations may offset the impact of recent stock price declines.

Goldman Sachs analysts said in a report: “Investors familiar with the Japanese stock market know that the initial guidelines of Japanese companies are often conservative.”

They said the negative price reaction to the conservative guidance may have come from new investors in the Japanese market over the past year. The strength of the Japanese stock market has attracted a large number of foreign investors to enter the market.

Goldman Sachs analysts are also optimistic about changes in the corporate governance structure during the quarterly reporting period. They said the “meaningful increase” in share repurchase announcements was particularly noteworthy and brought value to investors.

The Nikkei 225 Index rebounded after a sharp fall last weekend. Earlier, there was news that US consumers' inflation expectations had improved, causing US stocks to rise on Friday.

“After the (University of Michigan) confidence survey showed that inflation expectations are weakening, risk sentiment is optimistic today,” said Charu Chanana, a global market strategist and head of foreign exchange strategy at Saxo Bank.

Meanwhile, with Bank of Japan Governor Kazuo Ueda (Kazuo Ueda) and Deputy Governor Shinichi Uchida (Shinichi Uchida) speaking in early Asian trading, Japanese government yields continued to rise, and issues relating to the Bank of Japan's reduction in the scale of bond purchases and further interest rate hikes remain the focus.

Financial stocks tend to benefit in an environment where interest rates are higher, so they rise in the afternoon. The insurance sector rose 3.3%, leading the way in the Tokyo Stock Exchange's 33 industry classification indices.