The Nikkei 225 Index Closes 1.23% Lower

The Nikkei 225 Index gained 289 points or 0.54 percent on Friday to close at 54107 points. Gains were led by Ajinomoto (12.92%), Mitsubishi Motors (9.42%) and Omron (7.57%). Biggest losers were Kikkoman Corporation (-7.10%), Nikon Corporation (-6.17%) and Konica Minolta (-5.90%).

The Nikkei 225 rose 0.81% to close at 54,254, while the broader Topix Index gained 1.28% to 3,699 on Friday, reversing losses from earlier in the session and defying a broad selloff in the region as investors focused on this weekend’s national election. Prime Minister Sanae Takaichi called the snap vote to secure backing for increased spending and potential tax cuts, with her ruling coalition widely expected to win by a landslide. Markets also navigated heightened volatility, as tech stocks, precious metals, and cryptocurrencies sold off earlier in the Asian session before stabilizing. Japanese tech shares led the recovery, with gains from SoftBank Group (2.2%), Advantest (1.2%), Disco Corp (1%), Fujikura (3.4%), and Lasertec (4.5%). Consumer and financial stocks also gained, including Toyota Motor (2%), Sony Group (4.8%) and Mitsubishi UFJ (2.5%). The Nikkei and Topix indexes advanced 1.75% and 3.72%, respectively, for the week.

The Nikkei 225 fell 0.7% to below 53,500, while the broader Topix Index also dropped 0.7% to 3,626 on Friday, extending losses from the previous session amid a tech-led selloff on Wall Street. Concerns over massive artificial intelligence spending and potential disruption to software companies drove the decline. A broader selloff in metals and cryptocurrencies further weighed on risk sentiment, reflecting widespread deleveraging across financial markets. Technology stocks led the losses in Japan, with Kioxia Holdings down 5.6%, SoftBank Group falling 1.7%, and Advantest sliding 3.5%. Consumer and financial firms also came under pressure, including Nintendo (-3.7%) and Mitsubishi UFJ (-1.8%). Investors are also eyeing this weekend’s lower house elections, where the ruling LDP is expected to gain seats and pursue expansionary fiscal policies under Prime Minister Sane Takaichi.