Japanese stocks rose 0.1% in early trade as bond selloffs eased. The Nikkei index gained momentum from strength in trading houses and financial stocks. Market sentiment improved after recent volatility in bond markets subsided, supporting equity valuations.

The rally was driven by optimism in the financial sector, with major trading firms leading the gains. Asian markets showed broad-based improvement, reflecting global risk-on sentiment. The Nikkei's rise highlighted resilience in Japan's equity market amid easing credit concerns.