Japan’s Nikkei share gauge advanced on Friday, securing a weekly gain, as a reduction in rate hike expectations in the United States and encouraging economic indicators domestically enhanced market sentiment. The benchmark Nikkei 225 advanced 1.47% to close at 69,744.07, recovering from a 1.6% slide earlier in the session. The gauge experienced an increase of 0.5% over the week. The broader Topix gained 1.24% to 4,064.60, marking its fifth straight session of gains, its longest such run since October 2025.

A softer-than-expected U.S. payrolls report overnight led traders to reduce their near-term expectations for a rate increase by the Federal Reserve. Market sentiment was bolstered by data from Japan on Friday, indicating an uptick in services activity. “Following the release of the employment figures, expectations of an early interest rate hike by the Fed have receded, leading to firm performance in cyclical and consumer-related shares,” said Maki Sawada. A rebound in the yen and a decline in oil prices also benefited certain sectors, Sawada added.

Breadth exhibited a markedly positive trend, with 188 advancers on the Nikkei 225 juxtaposed against 36 decliners and one unchanged. The largest percentage gainers were Rohm 6963, up 14.18% and marking its highest close since May 2001, and Sumco 3436, up 11.30% and setting its highest close since September 2007. The largest losers included J.Front Retailing, which declined by 3.91%, followed by Otsuka Holdings, which fell by 2.54%, and Resonac Holdings, which experienced a loss of 2.23%.