TOKYO: Japan’s Nikkei advanced on Friday, capping a week in which the benchmark index climbed to a record high, as the yen weakened and data showed the nation’s economy was surprisingly resilient.
The Nikkei 225 Index gained 0.46%, following its ascent to an all-time high of 43,451.46 earlier in the week.
The broader Topix climbed nearly 1%.
The overnight drop in yen provided support to exporter shares, while data released on Friday showed Japan’s economy expanded at an annualised rate of 1% in the April-June quarter, beating forecasts.
Analysts expect the full impact of US tariffs on growth to emerge later.
Rising US Treasury yields and comments from US Treasury Secretary Scott Bessent on Thursday that the Bank of Japan will likely be raising interest rates were factors behind a jump in financial shares, said Wataru Akiyama, a strategist at Nomura Securities “Expectations for improved performance due to rising domestic interest rates are acting as a tailwind, leading to relatively large increases in bank and insurance company shares today,” Akiyama said.
Banks were the biggest gainers in the Topix, with a sub-index of lenders climbing 4.1% to the highest level since August 2006.
Shares of Mitsubishi UFJ Financial Group rose 5.7%, marking an eighth consecutive session of gains and hitting a record high.
There were 151 advancers in the Nikkei index against 66 decliners, positioning the gauge for a 2.6% climb over the week. Reuters
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