Japan's Topix index rises 1% to 3,137

Japan's Topix index rises 1% to 3,137

The Japan Topix index rose 1% to 3,137 on September 2, 2025, as a pause in global bond yields and a rebound in US tech stocks lifted market sentiment. The Topix Index, which includes 1,677 stocks, gained 0.8% to 3,073.38, while the Nikkei advanced 1.3% to 42,477.21 [1].

Sony Group Corp. contributed the most to the Topix Index gain, increasing 2.9%. Bank stocks, which had fallen on concerns about Prime Minister Shigeru Ishiba's precarious position potentially delaying a Bank of Japan rate hike, lifted the Topix the most. The Nasdaq, which had fallen in its two previous sessions, gained over 1% on Wednesday, boosting tech-related names like Sony, SoftBank Group, and Advantest [1].

Yutaka Miura, senior technical analyst at Mizuho Securities, noted that the selling pressure from the rise in long-term bond yields had calmed, allowing investors to repurchase stocks. Additionally, a pause in selling of the yen, which had weakened against the dollar on Wednesday due to domestic political instability, also helped sentiment [1].

Despite the temporary rebound, concerns about Ishiba's political position may keep investors cautious. "Investors aren't truly risk-on just yet," Miura said [1].

The MSCI AC Asia Pacific Index was up 0.6%, while the Topix Index is up 10% year-to-date, compared to the MSCI AC Asia Pacific Index's 17% gain. Topix Index members are trading at 15.5 times their estimated earnings for the next 12 months [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-09-04/japan-s-stocks-rally-as-mood-lifted-by-bond-market-calm-us-tech