TOKYO: Japan’s Nikkei index closed at an almost two-month high on Friday, boosted by gains in shares of Fast Retailing after it reported robust domestic sales.
The Nikkei share average rose 1.27% to 27,761.57, its highest closing level since April 5, and posted its biggest weekely jump since March 25 of 3.66%.
Uniqlo owner Fast Retailing jumped 5.86% and provided the biggest boost to the Nikkei after its same-store sales in Japan in May jumped 17.5%, rising for the second straight month.
But caution ahead of a key US jobs report due later in the day capped overall gains.
Japan’s Nikkei inches up amid caution on economic outlook
The broader Topix gained 0.35% 1,933.14 and advanced 2.43% for the week. “Fast Retailing and other retailers have posted a robust sales for the past month, which is a sign that the economy is normalising,” said Ikuo Mitsui, fund manager at Aizawa Securities.
“But looking at the limited gains on the Topix index, we can say investors are still careful about the outlook and are awaiting US jobs data.”
US government’s non-farm payrolls data is due on Friday, and investors will look for fresh signs on the US economy’s health and how aggressively the Federal Reserve may continue to raise interest rates.
Game and camera maker Sony Group led gains on Topix, rising 1.88%.
Chip-making equipment maker Tokyo Electron gained 2.39% and technology start-up investor SoftBank Group climbed 2.19%.
Z Holdings jumped 5.09% after the operator of Yahoo’s Japan business filed an application to issue up to 500 billion yen ($3.85 billion) bonds.
Toshiba fell 2.41% after the troubled conglomerate disclosed it had received eight initial proposals to take it private, as well as two proposals for capital alliances that would see it remain listed.
Toshiba had gained more than 6.47% in the past month.
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