Nikkei Rises as Tech Stocks Surge on Trade Optimism and Weaker Yen

TOKYO: Japan’s Nikkei average experienced an upswing on Friday, fueled by investors acquiring technology stocks following indications of a more lenient trade stance from the White House, coupled with a weaker yen after discussions between Japanese and U.S. financial leaders.

The Nikkei showed a 1.4% increase, reaching 35,518.96 as of 0221 GMT. The index is on track for a 2.2% rise this week.

The broader Topix index also saw gains, rising 1.08% to 2,620.44, and is poised to record a weekly gain of 2.35%.

Market Sentiment

Yusuke Sakai, a senior trader at T&D Asset Management, noted that investors have begun focusing on factors beyond tariffs, such as corporate earnings and the outlook for the semiconductor sector, following the shift in tone regarding tariff plans.

After the imposition of tariffs led to a trade standstill between the U.S. and China, the U.S. signaled this week that the situation was unsustainable.

Despite contrary comments from U.S. President Donald Trump, China has stated that it has not engaged in trade talks with Washington, cautioning other nations against pursuing deals with the U.S. at China’s expense.

Sakai added that the absence of currency level agreements between the finance chiefs of Japan and the U.S. alleviated concerns about a potential rise in the yen, bolstering sentiment for equities.

Tech and Auto Sectors Drive Nikkei Gains Amid Easing Trade War Fears

Japanese Finance Minister Katsunobu Kato mentioned on Thursday that he and U.S. Treasury Secretary Scott Bessent agreed to maintain a “constructive” dialogue on currency policy but did not discuss setting currency targets or a framework for controlling yen movements.

The yen was last down 0.23% at 142.94 against the dollar, after hitting a seven-month high of 139.885 earlier in the week.

Individual Stock Performance
  • Electric motor manufacturer Nidec saw a surge of 10%, emerging as the top percentage gainer in the Nikkei, following its announcement of a higher-than-expected quarterly profit and a forecast of record annual operating profit.
  • Fujitsu experienced a jump of 5.17% after the computer maker projected that its annual net profit for the year ending March 2026 would increase by 77% compared to the previous year.
  • Chip-related stocks Tokyo Electron and Advantest climbed 3.53% and 3.5%, respectively, contributing the most significant boost to the Nikkei.
  • Conversely, truck manufacturer Hino Motors declined by 5.7%, making it the worst-performing stock on the index.