The Nikkei 225 Index Closes 1.09% Lower

The Nikkei 225 climbed 1.3% to close at 53,123, while the broader TOPIX rose 0.9% to 3,645 on Friday, trimming weekly losses to 0.4%, as sentiment improved on global efforts to restore Gulf oil shipments disrupted by the war in Iran. Multiple countries moved to revive flows through the Strait of Hormuz after US President Trump signaled a more aggressive stance, even as the conflict, ongoing since late February, continues to drive volatility in energy markets. Hopes of a partial reopening also helped ease crude prices in Tokyo, offering support to equities, particularly given Japan’s heavy reliance on imported energy. Improving sentiment around the Middle East, alongside optimism over AI-driven growth, lifted expectations of solid corporate performance in the upcoming earnings season. AI suppliers Furukawa Electric and Fujikura surged 10.4% and 7.5%, respectively, while Sakura Internet surged 20.2% to its daily limit after Microsoft announced a ¥1.6 trillion AI partnership in Japan.

The Nikkei 225 Index rose 709 points or 1.35 percent on Friday to close at 53172 points. Leading the gains are Taiyo Yuden (12.35%), Hino Motors (12.04%) and Furukawa Electric (9.87%).

The Nikkei 225 climbed 1.7% to above 53,300, while the broad-based TOPIX gained 1.1% to 3,600 on Friday, reversing the prior day's losses amid hopes that the crucial waterway, the Strait of Hormuz, would partially reopen. Reports indicated that Iran is drafting a protocol with Oman to monitor and coordinate tanker traffic through the strait, which has been effectively shut since the start of the conflict. The plan would place transit under joint supervision and could require ships to pay tolls to Tehran. However, uncertainty lingered as oil prices remained elevated after Trump vowed to escalate the conflict in the coming weeks. Separately, Trump also unveiled sweeping tariff adjustments, including 100% duties on certain branded pharmaceutical imports with broad exemptions, alongside changes to metals tariffs. Among individual stocks, notable gains were seen from Hitachi (3.1%), Tokyo Electron (3.1%), SoftBank Group (1.4%), Fast Retailing (1.9%), and Mitsubishi (1.2%).