The Nikkei 225 Index Closes 1.01% Higher

The Nikkei 225 Index gained 596 points or 1.01 percent on Friday to close at 59736 points. Gains were led by Denki Kagaku Kogyo (9.02%), Taiyo Yuden (5.93%) and Mitsui Mining & Smelting (5.43%).

Asian equity markets mostly declined on Friday as rising oil prices weighed on sentiment amid stalled US-Iran peace negotiations and continued disruptions in the Strait of Hormuz. The ongoing supply uncertainty has kept energy prices elevated, reinforcing concerns over inflation and global growth. Major Asian economies, including China, Japan, and South Korea, are heavily reliant on oil imports from the Middle East, leaving the region particularly exposed to developments in the Iran conflict. Shares in Australia, South Korea, Hong Kong, and China all traded lower. Japanese equities showed a mixed performance, as investors digested inflation data that remained below the Bank of Japan’s 2% target ahead of its policy meeting next week.

The Nikkei 225 Index rose 0.97% to close at 59,716 on Friday, while the broader Topix Indexinched up 0.01% to 3,717,with the former settling at a new record high as investors assessed fresh inflation data ahead of next week’s Bank of Japan policy decision. Japan’s core inflation accelerated for the first time in five months, driven by higher energy costs, though it remained below the BOJ’s 2% target. Markets widely expect the central bank to keep interest rates unchanged, as policymakers navigate heightened uncertainty stemming from the Middle East, where stalled US-Iran peace efforts and ongoing blockades in the Strait of Hormuz continue to push energy prices higher and elevate inflation risks. Technology stocks led the advance, with gains from SoftBank Group (2.2%), Lasertec (3.8%), Fujikura (2.4%), Advantest (5.5%) and Ibiden Co (12.6%). For the week, the Nikkei 225 gained 2.12% while the Topix declined 1.18%.