Trade Deal Hopes Drive Nikkei to Best Weekly Gain in 3 Months

Image Credit: Reuters

Japan's Nikkei share average rose 1% on Friday, marking its strongest weekly performance in three months. Investor optimism grew, fueled by expectations that U.S. President Donald Trump could secure trade deals with some of Japan's key trading partners.

The Nikkei reached a two-week high of 34,758.97 before closing the day up 1.03% at 34,730.28, despite relatively low trading volumes due to the Easter holiday in other markets. The broader Topix index also gained 1.14%.

For the week, the Nikkei climbed 3.41%, ending a three-week losing streak, its biggest weekly rise since January 20.

On Thursday, Trump and Italian Prime Minister Giorgia Meloni expressed confidence in resolving U.S.-European Union trade disputes. Trump also hinted at the possibility of ending the ongoing tariff battle with China.

Earlier, Japan's economy minister, Ryosei Akazawa, began trade talks in Washington and shared that Trump had emphasized that reaching a deal with Japan was a "top priority." Trump later praised the discussions on social media, calling it "Big Progress!"

James Brady, Vice President at advisory firm Teneo, noted that the overall mood was positive, highlighted by Trump’s social media post with a smiling photo of him and Akazawa in the Oval Office. He added that the discussions had begun on a promising note.

The shipping sector was the second-best performer on the Tokyo Stock Exchange, rising 2.92%, while the pharmaceutical sector led with a 4.68% gain. Chugai Pharmaceutical surged 17.54% after a weight loss drug it developed and licensed to Eli Lilly showed positive results in clinical trials.

However, chip stocks weighed on the Nikkei, with investors resuming selling after a brief rebound on Thursday. Advantest fell 2.26%, and Screen Holdings dropped 3.97%, making them the worst performers on the index.

Paraphrasing text from "Reuters" all rights reserved by the original author