Reuters

Japan’s Nikkei Stock Average Ends at More Than One-Month High on Optimism around Trade Talks (UPDATE 1)

Yomiuri Shimbun file photo
The Tokyo Stock Exchange

Reuters

13:22 JST, May 9, 2025 (updated at 16:20 JST)

TOKYO, May 9 (Reuters) – Japan’s Nikkei share average closed at a more than one-month high on Friday, as risk appetite was lifted after a U.S. trade agreement with Britain raised optimism for progress in talks with other countries.

The Nikkei rose 1.56% to 37,503.33, its highest closing level since March 27. In a holiday-shortened week, the index rose 1.83% and posted a fourth straight week of gains.

The broader Topix rose 1.29% to 2,733.49, posting an 11-session rally – its longest since October 2017.

“Investors see that the market slump in April was the worst, and the environment not just for equities but for bonds is only getting better as more compromises on trade talks could be possible,” said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management.

U.S. President Donald Trump and British Prime Minister Keir Starmer on Thursday announced a limited bilateral trade agreement that leaves in place Trump’s 10% tariffs on British exports.

Financial markets are now awaiting the outcome of preliminary U.S.-China trade talks due to begin on Saturday in Switzerland.

Trump said on Thursday he expects there to be substantive negotiations between the two countries, and predicted that punitive U.S. tariffs on Beijing of 145% would likely come down.

“The market was also relieved that the outlook of Japanese firms, including Toyota, is not severely affected by the U.S. tariffs,” said Ueno.

Investors were once pessimistic about the corporate outlook amid uncertainties about the impact of U.S. tariffs.

Among individual stocks, NTT Data surged 14.26% after NTT said it would take the subsidiary private by purchasing the shares it does not already own at 4,000 yen per share.

Ajinomoto rose 7.4% after the food and healthcare company announced a 100-billion-yen ($686.2 million) share buyback.

On the other hand, Mitsubishi Heavy Industries fell 5.57% to become the worst percentage loser on the Nikkei.

($1 = 145.7300 yen)