SoftBank's 10% Pop Lifts Nikkei, But Interest-Rate Expectations Remain Key

Japan's Nikkei index broke a four-session losing streak on Friday after SoftBank, one of its biggest components, jumped about 10%. The benchmark gauge rose 0.86% by midday, but Japan's broader Topix index was down 0.18%, and major banks like Mitsubishi UFJ and Sumitomo Mitsui were lower.

The split in the market is significant because the Nikkei is price-weighted, meaning a big move in high-priced stocks can lift the whole gauge even if other stocks aren't doing much. SoftBank's 10% jump helped to boost the index, while falling Japanese government bond yields also supported companies that rely heavily on borrowing.

However, the market remains focused on the next Bank of Japan rate hike, which is expected to be announced later this month. The prospect of higher policy rates can pressure lenders and other rate-sensitive groups. As a result, the session was more about which sectors are winning the interest-rate tug-of-war rather than broad enthusiasm for the market.