Tokyo stock prices surged significantly during early trading on Friday as investors responded positively to a new trade pact between the United States and Britain—the first such agreement announced following President Donald Trump’s imposition of substantial tariffs on numerous nations.
The Nikkei Stock Average with 225 issues rose by 549.95 points, equivalent to a gain of 1.49%, reaching 37,478.58 from Thursday. Meanwhile, the more extensive Topix index climbed 39.28 points, marking an increase of 1.46% to stand at 2,738.00.
The U.S. dollar temporarily rose into the lower 146 yen territory in Tokyo trading sessions, with the Japanese currency, often considered a safe haven, being sold off following the announcement of a U.S.-U.K. trade agreement which alleviated worries regarding worldwide economic growth, according to market participants.
By midday, the dollar was trading at 145.66-68 yen, down from 145.87-97 yen in New York and 144.31-33 yen in Tokyo as of 5 p.m. on Thursday.
In New York, the euro was trading at $1.1216-1220 and 163.36-48 yen, compared to $1.1225-1235 and 163.68-78 yen later on Thursday afternoon in Tokyo.
The Nikkei stock index rose above 37,000 for the first time since March 28 during intra-day trading, driven by broad buying across various stocks fueled by optimism over advancing tariff discussions between the U.S. and other nations such as Japan, according to brokerage reports.
The depreciation of the yen also aided in boosting automotive sector stocks tied to exports since a weaker currency amplifies the overseas earnings for exporting companies when converted back into yen.
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