Japan’s Nikkei share index achieved its most significant weekly increase in almost two years on Friday, even as it reduced early gains later in the day amid rising concerns regarding the challenges of concluding negotiations to resolve the Iran conflict. The index has achieved consecutive record highs this week, marking its seventh consecutive session of gains on Friday, driven by increasing optimism surrounding AI-related shares. It recorded a 7.9% increase for the week, marking its most significant weekly gain since August 2024. On the day, the Nikkei closed 0.28% higher at 71,250.06, after spiking 1.3% to a record of 71,952.99. The broader Topix fell 0.57% to 4,044.96.

Switzerland announced that discussions between U.S. officials and Iranian negotiators regarding a potential agreement to resolve the Middle Eastern conflict will not occur on Friday. This development follows Vice President JD Vance’s decision to cancel his trip to Switzerland, further contributing to the ambiguity surrounding the prospects for a sustainable ceasefire. “The market expects more negotiations to come to end the war as there is a 60-day period to reach a final agreement, but this news came too suddenly and is an indication of a tough road ahead,” stated Daisuke Hashizume. “In addition, the market wanted to lock in profits for the recent rally before the weekend, especially since the U.S. market is due to be closed on Friday,” he added.

On Friday, chip-related Advantest 6857 and Kioxia 285A experienced increases of 4.75% and 12%, respectively. Fujikura 5803 surged 15.69% to a daily limit high of 5,161 yen following the fibre-optic cable maker’s revision of its annual net profit forecast to 229 billion yen. The AI data centre materials maker had initially guided for a profit of 156 billion yen, slightly below last year’s figure of 157.1 billion yen. “Fujikura raised its forecast at a time when the market turned cautious about the outlook of fibre optic cable makers,” Kazuaki Shimada stated. Fujikura’s peer, Furukawa Electric 5801, experienced a notable increase of 15%.Bank shares exerted downward pressure on the Topix, as Mitsubishi UFJ Financial Group and Mizuho Financial Group experienced declines of 2.85% and 4.42%, respectively.