Nikkei ends up nearly 2% on hopes US-China trade tensions ease

The Mainichi

25-04-2025

TOKYO (Kyodo) -- The Nikkei stock index rose for the third straight day to end up nearly 2 percent Friday, lifted by hopes of easing trade tensions between the United States and China.
The 225-issue Nikkei Stock Average closed up 666.59 points, or 1.90 percent, from Thursday at 35,705.74, its highest level since April 2. The broader Topix index finished 35.47 points, or 1.37 percent, higher at 2,628.03.
On the top-tier Prime Market, gainers were led by nonferrous metal, electric appliance and marine transportation issues.
The U.S. dollar briefly rose to the upper 143 yen range in Tokyo as the yen, seen as a safe-haven asset, was sold on easing fears of intensified trade friction between the world's two biggest economies.
The yen was also under pressure after the U.S. finance chief did not push his Japanese counterpart to prop up the yen during their talks in Washington, dealers said.
Stocks were boosted by export-oriented auto, electronics and machinery issues on the weaker yen, which increases exporters' overseas profits when repatriated.
The Nikkei index extended gains in the afternoon after a report that China is considering excluding some U.S. imports from its 125 percent tariffs, sharply lifting shares of companies that have strong sales in China, brokers said.
"Considering the impact of those two countries' trade volumes on the global economy, the easing of tensions in their tariff conflict clearly pushed up Japanese stocks," said Kazuo Kamitani, strategist at Nomura Securities Co.
The benchmark ended the day after erasing some gains as some investors sold shares to adjust their positions before the upcoming Golden Week holidays, brokers said.
Masahiro Yamaguchi, head of investment research at SMBC Trust Bank, said the stock market has been "too optimistic" as no progress has been made in tariff negotiations between Japan and the United States.
"Many companies may revise down their earnings outlook or not be able to release their projections" due to the impact of U.S. tariffs, he said.