Japan's Nikkei rises, ekes out weekly gain on Fed bets, domestic growth signs

Synopsis

Japanese stocks experienced an optimistic week with the Nikkei 225 showing an upward trend on Friday, driven by eased expectations regarding US rate hikes and encouraging local economic indicators. The market reacted positively to a weaker US jobs report, changing investor sentiment. With rising services activity in Japan, the Topix also notched its fifth day of gains, with Rohm and Sumco standing out as key performers.

Japan's Nikkei share gauge climbed on Friday, eking out a weekly gain, as a paring back of rate hike bets in the United States and positive ‌economic signs ⁠at home ⁠boosted sentiment.

The benchmark Nikkei 225 advanced 1.47% to close at 69,744.07, recovering from a 1.6% slide earlier in the session. The gauge gained 0.5% on the week. The broader Topix gained 1.24% to 4,064.60, marking its fifth straight session of gains, its longest such run since October 2025. A softer-than-expected ⁠U.S. payrolls ‌report overnight prompted traders to cut near-term bets for a rate increase by the Federal Reserve. Market ⁠sentiment was also supported by data in Japan on Friday showing improving services activity.

"Following the ​release of the employment figures, expectations of an early interest rate hike by the Fed have receded, leading to firm performance in cyclical and consumer-related shares," said Maki Sawada, an equities strategist at Nomura Securities. A rebound in the ‌yen and a decline in oil prices also helped certain sectors, Sawada added.

Breadth was overwhelmingly positive, ​with 188 ​advancers on the ⁠Nikkei 225 against 36 decliners and one unchanged. The largest percentage gainers were Rohm, up 14.18% and marking its highest close ​since May 2001, and Sumco, up 11.30% and setting its highest close since September 2007. The largest losers were J. Front Retailing, down 3.91%, followed by Otsuka Holdings, falling 2.54%, and Resonac Holdings, losing 2.23%.

...moreless

...moreless