TOKYO: Japan’s Nikkei share average headed for its best week in three months on Friday, as investors turned more hopeful that US President Donald Trump would be able to broker trade deals with some of its top trading partners, including Japan.
The Nikkei touched a two-week high of 34,651.91 before ending the morning session up 0.6% at 34,583.29, despite somewhat muted trading due to Easter holidays in most other markets.
The broader Topix added 0.8%.
The Nikkei is on course to rise 3% this week - the most since January 20 - and to snap a three-week losing run. On Thursday, Trump and close ally Italian Prime Minister Giorgia Meloni expressed optimism about resolving US-European Union trade tensions.
Trump also signalled a potential end to tit-for-tat tariff hikes with China.
A day earlier, Japan’s top negotiator, economy minister Ryosei Akazawa, kicked off dialogue in Washington, and told reporters aftewards that Trump had said getting a deal with Japan was a “top priority”.
Japan’s Nikkei rebounds, yen weakens as trade talks begin in Washington
Trump hailed discussions with Japan on social media, saying “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.” Shipping was the second-best performer among the Tokyo Stock Exchange’s 33 industry groupings, gaining 3.4%.
Pharmaceuticals topped the list with a 4.1% jump, led by a 17.7% surge for Chugai Pharmaceutical after an obesity drug it developed and licenced to Eli Lilly performed well in clinical trials.
Chip-sector shares dragged on the Nikkei though, as investors resumed selling after a rebound on Thursday.
Advantest sagged 2% and Screen Holdings dropped 3.1% to be the Nikkei’s worst performer.
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