The Japanese stock market index, Nikkei 225, closed at its highest level since 27 March 2025, gaining 1.56% on Friday to end the session at 37,503.33. The move capped a strong week, with the index climbing 1.83% over the shortened holiday stretch and marking four straight weeks of advances.<\/p>\n\n\n\n
The broader Topix index surged 1.29% to 2,733.49, logging an 11-session winning streak and marking its longest run since October 2017. <\/p>\n\n\n\n
Renewed risk appetite drove the rally, following the announcement of a limited trade agreement between the United States and the United Kingdom on Thursday.<\/p>\n\n\n\n
Although U.S. President Donald Trump confirmed that existing 10% tariffs on British exports would remain in place, markets welcomed the agreement as a signal of easing protectionist pressure. Optimism extended toward the upcoming U.S.-China trade negotiations in Switzerland, where Trump suggested punitive tariffs on Chinese goods could be reduced from the current 145%.<\/p>\n\n\n\n
Traders took the developments as a turning point from the April slump. \u201cThe environment not just for equities but for bonds is only getting better as more compromises on trade talks could be possible,\u201d said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management.<\/p>\n\n\n\n
Japanese equities also found relief in improving earnings sentiment. Despite tariff concerns, firms like\u00a0Toyota appear insulated\u00a0from worst-case scenarios, easing investor fears of corporate damage.<\/p>\n\n\n\n