Tokyo stocks rallied broadly on August 20 as investors welcomed falling long-term interest rates in both Japan and the United States, following the U.S. Treasury Department’s announcement that it would expand its Treasury bond buyback program. The Yomiuri Stock Index (Yomiuri 333) closed at 52,861.10, up 738.74 yen (1.42%) from the previous day, marking its first gain in four sessions.
The Nikkei Stock Average (225 issues) finished at 66,216.79, up 890.37 yen (1.36%), rebounding after three consecutive days of declines. The Tokyo Stock Price Index (TOPIX) also ended higher, rising 47.42 points (1.18%) to 4,059.73.
Among the 333 constituents of the Yomiuri 333, more than 80% — 270 stocks — advanced. On the Tokyo Stock Exchange Prime Market, over 80% of listed stocks also gained ground, with buying concentrated in AI (artificial intelligence) and semiconductor-related names.
In terms of individual stock performance, Sumitomo Metal Mining, a major non-ferrous metals producer, posted the largest gain at 10.76%, followed by Kansai Electric Power at 8.37% and Nissan Motor at 6.77%. On the downside, Aozora Bank led decliners with a 3.11% drop, followed by Ibiden at 2.87% and Nippon Steel at 2.20%.
The previous day, August 19, Tokyo markets had suffered steep losses — the Yomiuri 333 tumbled 1,246 yen and the Nikkei Average plunged 2,134 yen — as crude oil futures climbed amid stalled negotiations to end hostilities between the United States and Iran, while a global uptrend in long-term interest rates added further pressure. On August 20, that narrative reversed completely, as the U.S. Treasury’s expanded buyback plan fueled expectations of lower rates and provided a tailwind for equities.
Closing levels and day-over-day changes for major indices are as follows:
IndexCloseChange% ChangeYomiuri 33352,861.10+738.74+1.42%Nikkei Stock Average66,216.79+890.37+1.36%TOPIX4,059.73+47.42 pts+1.18%
Note: Closing prices as of August 20, 2026
Market participants note that U.S. interest rate trends continue to be a key driver of Japanese equity market direction. If the U.S. Treasury’s expanded bond buybacks exert sustained downward pressure on long-term yields, capital inflows into equities — particularly growth stocks — could continue. However, risks remain from Middle East geopolitical tensions, crude oil price movements, and the potential for renewed upward pressure on global interest rates, suggesting market volatility is likely to stay elevated.