Japan's Nikkei share average experienced a notable surge, marking its best week in three months, fueled by investor optimism regarding potential trade deals brokered by U.S. President Donald Trump.
Key Takeaways
- The Nikkei share average rose 1% on Friday, reaching a two-week high before closing up 1.03% at 34,730.28.
- The broader Topix index added 1.14%.
- The Nikkei's weekly gain of 3.41% was the highest since January 20, ending a three-week losing streak.
- Positive sentiment was driven by optimism surrounding U.S.-European Union trade relations and potential resolution of tariff disputes with China.
- Economy Minister Ryosei Akazawa's discussions in Washington, where Trump expressed the importance of a deal with Japan, further boosted confidence.
Market Performance
The Nikkei's positive performance was influenced by several factors, including:
- Shipping Sector: Gained 2.92%, emerging as the second-best performer among Tokyo Stock Exchange's industry groups.
- Pharmaceuticals: Topped the list with a 4.68% increase, propelled by Chugai Pharmaceutical's obesity drug performing well in clinical trials.
- Chip Sector: Faced selling pressure, with Advantest and Screen Holdings experiencing declines.
Expert Commentary
James Brady, vice president at Teneo, noted the overall positive sentiment, highlighting Trump's social media post featuring a photo with Akazawa as indicative of constructive discussions.
Individual Stock Performance
Here's a brief overview of individual stock movements:
| Company | Ticker | Change | Notes |
|---|---|---|---|
| Chugai Pharmaceutical | 4519.T | +17.54% | Surged after positive clinical trial results for its obesity drug. |
| Advantest | 6857.T | -2.26% | Experienced selling pressure in the chip sector. |
| Screen Holdings | 7735.T | -3.97% | Among the Nikkei's worst performers due to chip sector weakness. |
Additional Information
- The Reuters Tariff Watch newsletter provides daily updates on global trade and tariff news.