The Nikkei 225 Index Closes 0.63% Higher

The Nikkei 225 Index gained 432 points or 0.63 percent on Friday to close at 68741 points. Gains were led by Nintendo Co (6.80%), Sony (5.38%) and Furukawa (5.33%). Biggest losers were Isetan Mitsukoshi (-3.92%), DIC (-3.84%) and Toppan (-3.52%).

The Nikkei 225 Index rose 0.59% to close at 68,714, while the broader Topix Index gained 0.51% to 4,197 on Friday, with Japanese shares extending their rally and following a strong lead from Wall Street as subdued US inflation data prompted traders to scale back expectations for a Federal Reserve rate hike in September. Markets are now pricing in around a 35% chance of a 25 basis point Fed rate hike in September, down from 55% a week earlier. Domestically, investors are speculating about a possible Bank of Japan rate hike in September or October amid concerns that a weak yen could add to inflationary pressures. Technology stocks led the gains amid renewed interest in the artificial intelligence trade, including Kioxia Holdings (3.8%), Advantest (2.6%) and SoftBank Group (2.9%). The Nikkei and Topix indexes advanced 4.74% and 3% for the week, respectively.

The Nikkei 225 Index went up by 915 points or 1.35 percent on Thursday to close at 68439 points. The rise was led by Murata Manufacturing (11.36%), Toppan (10.47%) and Taiyo Yuden (7.16%).