Japan’s Nikkei share average ended higher on Friday, posting its best weekly performance in three months as investor sentiment improved on hopes that the United States would advance trade negotiations with key partners, including Japan.
The Nikkei (.N225) climbed 1.03% to close at 34,730.28, after reaching a two-week high of 34,758.97 earlier in the session. For the week, the index rose 3.41%, its biggest gain since January 20, snapping a three-week losing streak. The broader Topix (.TOPX) index also gained, rising 1.14%.
Investor optimism was fueled by signals from US President Donald Trump, who expressed confidence in securing trade deals with various partners. On Thursday, Trump and Italian Prime Minister Giorgia Meloni conveyed a positive outlook on resolving US-EU trade frictions. Trump also indicated progress in discussions with China and Japan.
Japan’s Economy Minister Ryosei Akazawa, who began trade talks in Washington this week, said Trump emphasized that a deal with Japan was a “top priority.” Trump echoed this message on social media, posting a photo with Akazawa and stating “Big Progress!”
“The mood seemed overall quite positive, underscored by Trump’s social media post featuring a smiling photo of him with Akazawa in the Oval Office,” said James Brady, vice president at advisory firm Teneo. “The general sense is that the discussions got off to a reasonable start.”
Gains were broad-based across industry sectors, with pharmaceuticals leading the way. The pharmaceutical sector index (.IPHAM.T) surged 4.68%, powered by a 17.54% rise in Chugai Pharmaceutical (4519.T) after clinical trial results for an obesity drug licensed to Eli Lilly impressed investors.
The shipping sector (.ISHIP.T) also performed well, rising 2.92%, while energy stocks benefited from a strong week for crude oil prices.
On the other hand, chip-related stocks underperformed. Advantest (6857.T) declined 2.26%, and Screen Holdings (7735.T) fell 3.97%, making them among the Nikkei’s weakest performers, as investors remained cautious about the tech sector amid ongoing tariff-related uncertainty.
Trading activity was somewhat subdued due to the Easter holiday closure of several global markets. Despite that, Japanese equities moved in step with broader global optimism about trade developments.
Elsewhere, US markets posted a mixed performance over the week. While the S&P 500 closed slightly higher on Thursday, it declined 1.5% over the four-day trading span. The Nasdaq 100, heavily weighted in tech, fell 2.3%, even as Netflix reported stronger-than-expected quarterly earnings.
Federal Reserve Chair Jerome Powell signaled a cautious stance on policy adjustments amid ongoing trade tensions, dampening market expectations for swift intervention. President Trump criticized Powell’s approach and reiterated his push for interest rate cuts, claiming he could remove the Fed chief if necessary.
Despite the uncertainty, confidence in a possible resolution of trade tensions — particularly involving Japan — helped bolster investor sentiment. Energy prices also surged, with West Texas Intermediate crude oil rising more than 5% on the week, while gold paused after hitting record highs earlier in the week.
The latest news in your social feeds
Subscribe to our social media platforms to stay tuned