Japan’s Nikkei share average rallied on Thursday, supported by improving investor sentiment after measures by the U.S. Treasury to stabilise the bond market triggered a sharp decline in U.S. yields and revived demand for riskier assets, according to a report by Reuters.The benchmark Nikkei 225 rose 1% to 65,982.49 at the midday break, while the broader Topix gained 0.91% to 4,048.72.Long-term borrowing costs in the United States, Germany and Japan had climbed to multi-decade highs earlier this week amid concerns over rising government debt and persistent inflation. The U.S. Treasury said overnight it would double the size of its buybacks of long-duration debt, helping push U.S. yields lower and easing pressure across global bond markets, Reuters reported.The decline in interest rates provided a broad boost to Japanese equities, with stocks and sectors that had lagged the recent rally in artificial intelligence and semiconductor-related shares showing stronger gains, according to Reuters.Market breadth was firmly positive, with 175 stocks advancing on the Nikkei 225, compared with 48 decliners and two unchanged.Sumitomo Metal Mining was the top percentage gainer on the index, climbing 9.72%, followed by Sumitomo Pharma, which rose 8.70%. Kansai Electric Power advanced 8.09%, putting the stock on track for its biggest one-day gain since August 2024.On the downside, Rohm fell 3.88%, while Ibiden and Sumco declined 3.40% and 3.18%, respectively.The broader rally reflected a shift in investor appetite as lower global bond yields reduced pressure on equity valuations and encouraged buying beyond the technology and semiconductor stocks that had led recent market gains.