Tokyo stock prices surged significantly on Friday following a trade deal between the United States and Britain, which sparked optimism about advancements in negotiations between Washington and other trading nations.
The Nikkei Stock Average with 225 issues concluded trading 574.70 points, equivalent to an increase of 1.56%, reaching 37,503.33, surpassing the 37,000 mark for the first time since March 28. Meanwhile, the more extensive Topux index rose by 34.77 points, marking a gain of 1.29% to close at 2,733.49.
At the premium Prime Market, leaders among the gainers included stocks from the warehousing, harbor transport services, banking, and insurance sectors.
The U.S. dollar momentarily rose into the lower 146 yen territory in Tokyo trading sessions. This move came as the Japanese yen, often considered a safe-haven asset, faced selling pressure following the announcement of a new U.S.-U.K. trade agreement, which alleviated worries regarding worldwide economic growth, according to market participants.
It subsequently withdrew to the lower 145 yen region after a recent significant surge.
Shares rose as various sectors saw buying activity following the announcement of an initial trade pact. This development came after U.S. President Donald Trump had levied significant duties on numerous nations. The accord preceded upcoming high-level discussions between the United States and China set for this weekend.
“Although this event may just mark the outset of certain discussions, there are hopes that progress will begin to take shape,” stated Masahiro Yamaguchi, who leads investment research at SMBC Trust Bank.
Among the winners were automobile sector stocks that gained due to a decline in the value of the Japanese yen, boosting the overseas earnings for these exporting companies once converted back into their home currency.
However, investors did not rush into higher positions due to uncertainty about whether Washington and Beijing could achieve substantial advancements in their discussions, according to Yamaguchi.
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