Financial Wire

Nikkei Advances as Fiscal Outlook Calms Rate Fears

-- Japanese stocks closed higher on Monday, supported by policy signals after an opposition party leader called for a medium-term fiscal roadmap to restore surplus by around 2030, easing concerns over rising interest rates.

The Nikkei 225 rose 0.6%, or 348.99 points, to close at 58,824.89.

Yuichiro Tamaki said Japan should outline a credible five-year path to return to a primary surplus by around 2030, while accepting near-term deficits.

He also said monetary policy should move gradually toward normalization, with rate hikes calibrated carefully given risks from the Iran conflict.

Markets have pared expectations for an April rate increase by the Bank of Japan amid uncertainty over the Middle East situation. The government has tapped oil reserves and is seeking alternative supply sources, though public concern over the economic impact remains high.

In economic news, Japan's tertiary activity index fell 0.4% in February as weakness in retail and utilities offset gains in finance.

Japanese household sentiment improved slightly in March but remained negative, with inflation expectations staying elevated, a Bank of Japan survey showed.

On the corporate front, Komehyo Holdings (TYO:2780) fell 1% after reporting a 43% jump in March sales. Cyfuse Biomedical (TYO:4892) rose 12% after a report said it will begin human trials of a 3D-printed knee regeneration therapy.

IwaiCosmo (TYO:8707) slipped 2% despite a 55% rise in full-year profit and record earnings.

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