Nikkei ends at record high as yen weakens
The overnight drop in yen provided support to exporters' shares, while data released on Friday showed Japan's economy expanded at an annualised rate of 1% in the April-June quarter, beating forecasts. Analysts expect the full impact of US tariffs on growth to emerge later.
Rising US Treasury yields and comments from US Treasury Secretary Scott Bessent on Thursday that the Bank of Japan will likely be raising interest rates were factors behind a jump in financial shares, Nomura Securities strategist Wataru Akiyama said.
'Expectations for improved performance due to rising domestic interest rates are acting as a tailwind, leading to relatively large increases in bank and insurance company shares today,' he said.
Banks were the biggest gainers in the Topix, with a sub-index of lenders climbing 4.7% to its highest level since May 2006. Shares of Mitsubishi UFJ Financial Group rose 6%, marking an eighth consecutive session of gains and hitting a record high.
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