Tokyo’s stock indices extended last week’s gains on Monday, closing at record highs as a weaker yen boosted automakers’ shares. The Nikkei rose 0.77% to 43,714.31 points and the broader TOPIX gained 0.43% to 3,120.96, both closing at session records for the second consecutive day. Optimism about domestic companies and clearer effects of U.S. tariffs supported the market, along with expectations of continued foreign buying. Fast Retailing rose 1.28% and Advantest reversed early losses to close up 1.48%. Toyota Motor and Honda Motor climbed 1.72% and 1.56% respectively amid a roughly 0.2% decline in the yen against the dollar.

Bank shares lagged, with the banks index down 1.93%; Mitsubishi UFJ Financial Group fell 2.55% and Sumitomo Mitsui Financial Group dropped 2.3%. Tokyo Electron lost 2.14%, the biggest decliner on the Nikkei, while Sony Group fell 2.54%. Of more than 1,600 stocks on the main Tokyo market, 69% advanced, 27% declined and 2% were unchanged.

Japanese government bonds fell, pushing yields higher following U.S. Treasury moves last week, with investors awaiting a 20-year JGB auction. The 20-year yield rose 1.5 basis points to 2.575%, the highest since July 24. The 10-year yield increased 1.5 basis points to 1.575%, the highest since July 28. The 30-year yield rose two basis points to 3.115% and the 5-year yield rose one basis point to 1.12%. Market participants are considering the rise in U.S. Treasury yields and there is caution ahead of the 20-year auction. Analysts expect relatively strong demand for the 20-year auction due to attractive yields and rebalancing demand from pension funds following equity gains.