Japan’s Nikkei share gauge rose on Friday, continuing its weekly gain, following softer U.S. producer prices that alleviated concerns regarding a near-term Federal Reserve interest rate hike and bolstered risk appetite. The benchmark Nikkei 225 advanced 0.59% to close at 68,713.80, notching a 4.7% weekly gain. The broader Topix climbed 0.51% to 4,197.20, marking a record closing level. U.S. stocks experienced a rally overnight following the release of data indicating that producer prices for July remained unchanged.

This development bolsters expectations that the Federal Reserve will maintain current interest rates in the upcoming month. The S&P 500 and the Nasdaq both closed at record highs. “We are seeing a trend where the rise in U.S. share prices is spilling over into Japan,” said Wataru Akiyama, an equities strategist at Nomura Securities. “Factors such as lower crude oil prices and waning expectations for an early interest rate hike in the U.S. due to slowing inflation are positive for the Japanese market as well.”

On the Nikkei 225, there were 132 advancers compared to 92 decliners, with one stock remaining unchanged. The largest percentage gainers in the index were Nexon, which increased by 19.85%, marking its most significant one-day gain since February 2024. Following Nexon was Shift, up 7.57%, and Nintendo, which saw a gain of 6.91%. The biggest losers were Isetan Mitsukoshi Holdings, which dropped 3.98%, Lasertec, which dropped 4.12%, and Trend Micro, which fell 14.60%, its greatest one-day decline since February 2024.